Maurel & Prom : 2016 Annual Results
(Thomson Reuters ONE) -
Paris, 3 April 2017
No. 09-17
2016 Annual Results
Key financial aggregates
in ?M 2016 2015 Chg.
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Sales 317 276 +15%
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Gross operating surplus 141 107 +32%
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As a % of sales 44% 39%
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Operating income 17 -25
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Financial income -30 -7
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Group share from equity associates -28 -95
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Consolidated net income -50 -95
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Cash flow from operating activities +86 -7
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Investments 44 178 -75%
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Cash position (available and on deposit) 264 274 - 4%
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Available cash 193 274
RCF guarantee deposits 71 _
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* Consolidated sales up by 15% at ?317m
* Maurel & Prom share of production up by 37% to 25,202 boepd
* Selling price down by 9% to $42.7/bbl
* Continuing cost reduction initiatives
* Increase in gross operating margin (EBITDA rate) from 39% to 44%
* Operating result showing profit of ?17m
* Cash levels remain high at ?264m
* Cash flow from operating activities was a positive ?86m versus a
negative ?7m in 2015
* Reduction in investments: ?44m in 2016 versus ?178m in 2015
* Repayment of a portion of the bank loan amounting to ?33m
* Takeover bid by PIEP for Maurel & Prom securities
* PIEP now owns 72.65% of Maurel & Prom
* Partial repayment of the 2019 and 2021 ORNANEs
2016 Activity
The economic environment, characterised by the low price of Brent, has resulted
in lower average sale prices than in 2015. The average sale price in 2016 was
down 9% at US$42.7/b, compared with US$47.1/b in 2015. This drop, however, was
offset by a big increase in production relative to 2015, which had been
adversely impacted by a production stoppage in Gabon for the entire month of
September. M&P share of total production (in Gabon and Tanzania) was up by 37%
to 25,202 boepd in 2016, compared with 18,367 boepd in the same period the
previous year. Sales were up by 15% to ?317 million in 2016, compared with ?276
million in 2015.
The EUR/USD exchange rate was steady over the period, averaging 1.11.
The improvement in production output and in the control of fixed costs allowed
the Group to increase its gross operating margin (EBITDA rate) from 39% to 44%.
The operating result was a ?17 million profit.
The cost of gross financial debt was stable at -?36 million, reflecting the
early repayment on 13 September 2016 of the US$33.3 million balance of the US$50
million credit facility signed on 23 December 2013 between Maurel & Prom
Drilling Services BV, Maurel & Prom, Caroil and Crédit Suisse.
The Group's share in the results of equity associates amounted to a loss of ?28
million, mainly reflecting SEPLAT losses due to the stoppage at the export
terminal, operated by a third party, since mid-February 2016.
Group consolidated net results for 2016 reported a loss of ?50 million, compared
with a loss of ?95 in 2015.
In 2016, Maurel & Prom continued its cost reduction strategy by adjusting its
investment plans and tightening its cost structure. In this respect, cash flow
from operating activities which had been negative in 2015, amounted to a
positive ?86 million in 2016. This cash flow, in addition to the ?4 million
dividend received from SEPLAT, funded the investments mostly in Gabon on the
Ezanga permit (?44 million), repaid the Crédit Suisse credit facility (US$33
million) and paid the loan interest (?20 million).
Accordingly, as at 31 December 2016, the Group reported a cash position
(available and on deposit) of ?264 million, including ?193 million as available
cash and US$75 million as collateral for the Revolving Credit facility.
Note on debt
· Bank loans
As at 31 December 2016, Maurel & Prom Group had a US$400 million variable-rate
revolving credit facility (RCF) expiring at the end of 2020.
Following Pacifico's transfer of the Company's shares to Pertamina, Crédit
Suisse informed the Company of its intent to trigger the change-in-control
clause. The Group therefore decided to repay early - on 13 September 2016 - the
US$33.3-million balance on the credit agreement entered into by Maurel & Prom
Drilling Services BV, Maurel & Prom, Caroil and Crédit Suisse dated 23 December
2013 for an initial amount of US$50 million.
Given the economic environment in the first half of 2016, Maurel & Prom and its
banking consortium decided to amend some of the terms of the Revolving Credit
Facility as follows:
* the Group's net consolidated debt to EBITDAX ratio must now be below 6 at
30/06/2016, and 5.5 at 31/12/2016;
* a security deposit of US$75 million was paid and is reported under non-
current financial assets as a cash deduction;
* pledged SEPLAT shares are equivalent to US$25 million.
The Company confirms that as at 31/12/2016, it was in compliance with its
commitments in respect of the RCF.
· Bonds
As at 31 December 2016, it had issued two fixed-rate bonds (2019 ORNANEs with an
exercise value of ?253 million, and 2021 ORNANEs with an exercise value of ?115
million).
As part of the takeover bid for Maurel & Prom launched by Pertamina
Internasional EP (PIEP), Pertamina bought outright, after reopening its bid on
9 February 2017, 7,635,839 2019 ORNANEs and 4,359,150 2021 ORNANEs. Following
the bid, ORNANE owners requested the early redemption of 7,005,394 2019 ORNANEs
and 6,076,181 2021 ORNANEs. This early redemption of the ORNANEs on 10 March
2017 was financed by the funds made available to Maurel & Prom by PIEP in the
form of a shareholder loan on the same terms as the ORNANEs. The corresponding
bonds will now be cancelled.
At present, there are therefore 7,652,775 outstanding 2019 ORNANEs, of which
7,635,839 are held by PIEP and 4,359,390 outstanding 2021 ORNANEs, of which
4,359,150 are held by PIEP.
· Net debt
In light of the above, the Group's net debt at the end of the year stood at ?470
million.
Events occurring after closing
· New majority shareholder: PIEP
Following the takeover bid initiated by PIEP, the wholly owned subsidiary of
Indonesian company Pertamina, for Maurel & Prom securities, which closed on 9
February 2017, PIEP now owns 72.65% of Maurel & Prom's capital.
Breakdown of shareholding by investor type
PIEP: 72.65%
Institutional investors: 4.77%
Individual investors: 16.50%
Treasury shares 2.27%
Employees: 0.80%
Other: 3.01%
Breakdown of institutional investors by geographical location
France: 48%
United States: 29%
Switzerland: 14%
Belgium: 3%
UK: 2%
Rest of Europe: 3%
Rest of the World: 1%
As at 2 March 2017, Maurel & Prom had approximately 31,000 shareholders. The
free float portion was 24.28% and no shareholder, with the exception of PIEP,
owned more than 2% of the capital.
· Note about the situation in Gabon
The strike organised by ONEP (the country's oil trade union) on 22 February
2017 - even though, in accordance with regulations, discussions were being held
with union representatives, Labour Ministry authorities and the management of
Maurel & Prom Gabon - led to an abrupt shutdown of production on the Ezanga
permit that afternoon. Operations gradually started up again on 24 February
2017 but have yet to reach optimal levels. Consequently, average production in
February was 21,000 bopd, and that of the first quarter was approximately
24,000 bopd for M&P's share.
Outlook and strategy
Following the takeover, PIEP holds 72.65% of the share capital of Maurel & Prom.
For the Indonesian group, the merger with Maurel & Prom is part of its strategy
to expand outside its home market, in particular by acquiring exploration and
production assets on the African continent.
Maurel & Prom is continuing its activities by acting as a platform for
developing the international strategy of Pertamina and PIEP's upstream
operations.
Maurel & Prom shares remain listed on Euronext Paris, the free float amounting
to approximately 25%.
For Maurel & Prom, this transaction gives it the support of a state-owned
industrial company enjoying sustained growth and benefiting from the resources
required to expand in a context of low raw material prices.
Audit procedures are in the process of being finalised. The consolidated
financial statements as at 31 December 2016, approved by the Board of Directors
on 31 March 2017, are available on the Company's website. (www.maureletprom.fr)
Next publication:
25 April 2017: Sales for the first half of 2017, released after the markets
closed
French English
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pieds cubes pc cf cubic feet
pieds cubes par jour pc/j cfpd cubic feet per day
milliers de pieds cubes kpc Mcf 1,000 cubic feet
millions de pieds cubes Mpc MMcf 1,000 Mcf = million cubic feet
milliards de pieds cubes Gpc Bcf billion cubic feet
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baril b bbl barrel
barils d'huile par jour b/j bopd barrels of oil per day
milliers de barils kb Mbbl 1,000 barrels
millions de barils Mb MMbbl 1,000 Mbbl = million barrels
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barils équivalent pétrole bep boe barrels of oil equivalent
barils équivalent pétrole par bep/j boepd barrels of oil equivalent per
jour day
milliers de barils équivalent kbep Mboe 1,000 barrels of oil equivalent
pétrole
millions de barils équivalent Mbep MMboe 1,000 Mbbl = million barrels of
pétrole oil equivalent
For more information, go to www.maureletprom.fr
MAUREL & PROM
Tel: +33 (0)1 53 83 16 00
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir(at)maureletprom.fr
This document may contain forecasts regarding the financial position, results,
business and industrial strategy of Maurel & Prom. By nature, forecasts contain
risks and uncertainties to the extent that they are based on events or
circumstances that may or may not happen in the future. These projections are
based on assumptions we believe to be reasonable, but which may prove to be
incorrect and which depend on a number of risk factors, such as fluctuations in
crude oil prices, changes in exchange rates, uncertainties associated with the
valuation of our oil reserves, actual rates of oil production and associated
costs, operational problems, political stability, legislative or regulatory
reforms, or even wars, terrorism and sabotage.
Maurel & Prom is listed for trading on Euronext Paris
CAC® mid 60 - SBF120® - CAC® Mid & Small - CAC® All-Tradable - CAC® All-Share -
CAC PME - EnterNext© PEA-PME 150
ISIN FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
RN16_MAU_3AVRIL17_EN_WIRE.pdf:
http://hugin.info/155421/R/2092950/791044.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Maurel & Prom via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 03.04.2017 - 07:39 Uhr
Sprache: Deutsch
News-ID 533923
Anzahl Zeichen: 15112
contact information:
Town:
Paris
Kategorie:
Business News
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"Maurel & Prom : 2016 Annual Results"
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