Maurel & Prom :Consolidated results at 30 June 2017
(Thomson Reuters ONE) -
Paris, 13 September 2017
No. 20-17
Consolidated results at 30 June 2017
* Sharp increase in Group margins
* 29% increase in selling price of oil
* 7% decline in oil quantities sold in Gabon
* 8% increase in gas production in Tanzania
* EBITDA margin up at 45%
* Sharp improvement in EBIT at ?18m, versus -?5m in H1 2016
* Net loss coming from non-recurring financial expenses and unfavourable
EUR/USD rate
* ?10m non-recurring expenses in borrowing cost following the early
repayment of the CBs
* Increase in the EUR/USD exchange rate: -?33m
* Net income: -?57m
* Decrease in Group net debt to ?420m
* Operating cash flow finance capex and debt service
* Increase in operating cash flow: +?79m versus -?16m in H1 2016
* Capex in Gabon limited to ?20m
* Two initial repayments of the RCF, reducing the principal to $362.5m
* Cash (including RCF collateral) increased to ?254m
Main financial aggregates at 30 June 2017:
in ?m H1 2017 H1 2016
Sales 172 142
EBITDA 78 57
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EBIT 18 -5
Financial income -54 -22
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Taxes -14 1
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Income from equity associates -6 -12
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Net income (loss) of the consolidated entity -57 -37
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Cash flow from operations 79 -16
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Cash and collateral related to the RCF 254 230
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To listen to the audiocast of Maurel & Prom's 2017 half-year results, click on
the following link after 9am on Wednesday, 13 September 2017:
http://edge.media-server.com/m/p/jd7cowk8/lan/en
Economic environment
In H1 2017, the average oil price stood at $50.7/bbl versus $39.2/bbl in H1
2016, an increase of 29%.
The EUR/USD exchange rate at 30 June 2017 was 1.1412 versus 1.0541 at 31
December 2016, an increase of 8%. The average exchange rate for the period was
1.0825 versus 1.1159 in the first half of 2016, an increase of 3%.
Production activities
In Gabon, oil production for the period stood at 19,764 bopd for M&P's share
(80%), or a total of 24,705 bopd operated by Maurel & Prom. This level was below
the fields' production capacity, which had been impacted by a strike that
disrupted operations in Q1 2017. The implications of the strike continued into
Q2 2017. As a result, production in Q2 2017 stood at 25,154 bopd, versus 24,139
bopd in Q1 2017 (at 100%). The recovery towards M&P objectives speeds up, into
July and August 2017 production averages 25,400 bopd at 100%. Current level (at
100 %, 10 last day average) is around 27,200 bopd.
In Tanzania, gas output was 17.8 MMcf/d for M&P's share (48.06%). Gas production
capacity on the Mnazi Bay permit is currently around 80 MMcf/d for average
operated production of around 37 MMcf/d at 100% in H1 2017. This production
level is dependent on industrial gas consumption in Dar Es Salam, traditionally
lower in the first half, which is routed through TPDC buying from the operator.
In July 2017, demand from TPDC increased, with production in the last two months
averaging 57 MMcf/d at 100%.
Drilling activities
Drilling activities are still limited in a context that remains depressed. The
drilling of an exploration well on behalf of Aminex in Tanzania, begun at the
end of 2016, was completed in March 2017. The Group continued to manage drilling
rigs for ENI Congo in H1 2017, albeit on a less sustained basis than in 2016.
Seplat (Nigeria)
In June 2017, Seplat - in which Maurel & Prom has a 21.37% stake - resumed
routing its oil production through the Forcados export terminal, which had been
shut down since mid-February 2016. As a result, Seplat could get back to the
hydrocarbon production levels achieved before force majeure was declared at the
export terminal, and significantly increase the gas production.
Pertamina International Exploration Production takeover bid
The takeover bid initiated in 2016 by PIEP for Maurel & Prom shares was
finalised in the first half of 2017. As at 30 June 2017, PIEP held 141,911,939
Maurel & Prom shares and 72.65% of the capital of Maurel & Prom.
As PIEP's majority stake in Maurel & Prom's capital constituted a change in
control, bearers of the 2019 and 2021 ORNANE bonds had the option to request the
early repayment in cash of all or some of their bonds between 6 February 2017
and 3 March 2017. The early repayment of 7,005,394 2019 ORNANE bonds and
6,076,181 2021 ORNANE bonds, which were cancelled, was made on 10 March 2017.
This early repayment was financed through funds made available to Maurel & Prom
by PIEP through a shareholder loan under the terms of the ORNANE bonds (i.e.
same rates and maturity apart from conversion option).
At present, therefore, there are 7,652,775 outstanding 2019 ORNANE bonds, of
which 7,635,839 are held by PIEP, and 4,359,390 outstanding 2021 ORNANE bonds,
of which 4,359,150 are held by PIEP.
Financial information
The Group's consolidated sales for the first half of 2017 were up 21% at
?172 million resulting from a 29% increase in oil prices to $50.7/bbl and a 7%
drop in the quantities produced in Gabon to 19,764 bopd for M&P's share.
The increase in oil prices had a direct positive impact on the Group's margins.
The EBITDA margin rose from 40% in H1 2016 to 45% of sales in H1 2017. Current
operating income therefore amounted to ?23 million in H1 2017 versus -?1.7
million in H1 2016. As for the Group's operating income, this amounted to ?18
million in H1 2017 versus -?5 million in H1 2016.
Financial income for first-half 2017 was -?54 million, which included:
* a net borrowing cost of ?20 million, including ?10 million in non-recurring
expenses associated with the reclassification as income of a portion of the
expenses related to the issue of the ORNANE bonds following the early
repayment; and
* foreign exchange losses of ?33 million, mainly related to revaluing the
Group's currency positions at the closing rate. The EUR/USD exchange rate at
30 June 2017 was 1.1412 versus 1.0541 at 31 December 2016.
The Group's share of the income of equity associates was -?5.6 million. Seplat's
income was heavily impacted by the shut-down of the export terminal in mid-
February 2016. The terminal's reopening in June 2017 allowed the Company to
regain its export capacity. Seplat also suffered a loss when it rehedged
hydrocarbons.
The Group's consolidated net income at 30 June 2017 was -?56.6 million. It was
mainly impacted by the decline in the EUR/USD exchange rate in the first half of
2017.
Cash flow from operating activities, which had been negative in H1 2016, was a
positive ?79 million in H1 2017. This cash fow was used to finance (i)
investments in Gabon of ?20 million, (ii) the first two repayments of the RCF,
which had reached maturity, in the amount of $37 million, and (iii) interest
payments on borrowings of ?12 million.
As at 30 June 2017, the Group had ?254 million in cash, ?188 million of it
available, and ?75 million in the form of a collateral deposit to guarantee the
Revolving Credit Facility ("RCF").
The financial report as at 30 June 2017 is available on the Company's website at
www.maureletprom.fr.
English
French
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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, visit: 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 forward-looking statements regarding the financial
position, results, activities and industrial strategy of Maurel & Prom. By their
very nature, such forward looking statements consider risks and uncertainties
based on events and circumstances that may or may not occur in the future. These
projections are based on assumptions that we believe to be reasonable, but that
may prove to be incorrect and that depend on a number of risk factors, such as
fluctuations in crude oil prices, changes in exchange rates, uncertainties
related to the valuation of our oil reserves, actual rates of oil production and
related costs, operational problems, political stability, legislative or
regulatory reforms, or even wars, terrorism and sabotage.
Maurel & Prom is listed for trading on Euronext Paris - Compartment A -
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
MAU_RS1_13SEP17_EN.pdf:
http://hugin.info/155421/R/2133731/816255.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: 13.09.2017 - 07:13 Uhr
Sprache: Deutsch
News-ID 559690
Anzahl Zeichen: 13046
contact information:
Town:
Paris
Kategorie:
Business News
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