|By PR Newswire||
|August 31, 2012 01:56 AM EDT||
PARIS, August 31, 2012 /PRNewswire/ --
In EURm H1 2012 H1 2011* Var Key comments Sales 226 183 +23% $/EUR: +8% Sale price: +3% Gross operating income 164 129 +27% First sales on Sabanero in Colombia Income from asset Non recurrent result in disposals 0 112 Nc 2011 1H Current operating income 2011: 116 Operating income 86 218 Nc Non current op. income 2011: 112 Financial income (6) (74) Nc Favourable $/EUR effect Net consolidated income 32 90 Nc Net consolidated income exc. Income from asset Increase in net income disposals 32 (22) Nc exc. income from asset disposals (*) Restated for discontinued activities
Maurel & Prom is an independent mid-size player specialising in Africa and Latin America. The Group's teams combine experience and references in its various fields of activity.
As at 30 June 2012, Maurel & Prom was present in six operating permits and 20 exploration permits.
Maurel & Prom funds its strategy on capitalising on its exploration activities and rapidly bringing its discoveries into production.
In order to adapt to the economic and financial situation, since 2009 the Group has refocused its strategy towards the assessment and development of its resources, particularly in Gabon and Colombia. As a result, the Group now has:
- Output of approximately 14,500 boepd as its own share;
- 2P reserves net of royalties estimated at 240 Mboe;
- Substantial identified resources;
- High-potential territories for exploration of more than 80,000 km²;
- Experienced teams from well-known oil companies.
The Group's activity in the first half of 2012 is principally focused on development on assets already in the Group's portfolio while also actively seeking out new partnerships.
Development of existing fields
Stabilisation of Gabon production
In the first half of 2012, output from Gabon fields stabilised at 16,491 boepd. The Group applied to the Hydrocarbons Directorate for an Exploration and Operation Permit for the Omoc field and offered to withdraw from the existing Onal permit in return, following the discovery of the Omoc-Nord field.
Update on the incident at platform Omoc-N 100
The steady ramping-up of production after the initiation of the water injection programme was interrupted by an incident in late January on platform 100 at the Omoc-Nord field. The impact of this incident (at least 1,700 boepd) will be felt until the end of the third quarter of 2012, with the exact date being dependent on the progress made in connecting the wells of the replacement platforms.
Target for the second half of 2012
The Group reaffirms its production target of approximately 24,500 boepd (at 100%) by the end of 2012. This target will be reached by connecting to four additional platforms in September, November and December.
Continuing exploration activity
Production at the Sabanero field began on 17 December 2011, and by the end of June 2012 output had stabilised at approximately 1,500 boepd (at 100%). This production level is temporarily restricted by existing processing capacity and the reinjection of the water produced. Note that a production permit for the Sabanero field has been filed with the ANH (National Hydrocarbon Agency). This permit should be granted in the first quarter of 2013 and will allow a works programme to be launched to significantly increase the field's output.
At the Etekamba permit (100%), the Group drilled two wells during the first half of the year. Both wells proved to be negative.
The work done showed that the Gamba reservoirs are of very high quality. This license ending in January 2013, the Group is currently working on the identification of new play according to observed results.
The Ziwani-1 well on the Mnazi Bay permit (M&P operator, 60.075%) was drilled to a depth of 2,671 m.
A three-metre interval was tested for gas between 1,106 and 1,109 m. An unstable flow of 7.2 million cubic feet per day was reported without being able to stabilise the pressure. This test was conducted on a new carbonate reservoir, not yet identified on the Mnazi Bay concession.
The measures taken did not reveal commercial reserves but nevertheless proved that an effective deposit system exists, therefore confirming the significant potential of the prospects already identified by the Group on this permit.
Consolidation of assets in East Africa
Maurel & Prom exercised its pre-emptive rights on Cove Energy's interests in the Mnazi Bay concession in Tanzania.
The value of the transaction amounts to US$18.9 million, which was paid to Wentworth following its approval by the Tanzanian authorities on 26 July 2012. An additional amount of up to US$5.1 million will be payable if future gas production exceeds certain thresholds.
Following this transaction, the various interests in Mnazi Bay break down as follows:
Production Exploration M&P (operator) 48.06% 60.075% Wentworth 31.94% 39.925% TPDC 20.00% -
Financial position at 30 JUNE 2012
The Group's activity, described above, as well as the economic and financial environment, is reflected in the following elements of the consolidated financial statements. The consolidated financial statements were approved by the Board of Directors on 30 August 2012.
Sales - Oil production
Group half-year consolidated sales were €225.9 million, up 24% on the same period in 2011.
This increase was mainly due to the increase in oil prices (average sale price of US$113.2/bbl in Gabon versus US$109.8/bbl for the first half of 2011) and the incorporation of the oil sales from the Sabanero field in Colombia for the first time.
In thousands of euros 30/06/2012 30/06/2011* Sales 226 183 Gross margin 182 147 as % of sales 81% 80% Gross operating surplus 164 129 as % of sales 73% 70% Amortisation and depreciation of depletion and other impairments -35 -18 Income from production activities 129 111 as % of sales 57% 61% Exploration expenses -30 -5 Income from oil production and exploration activities 99 106 as % of sales 44% 58% Income from disposal of assets 0 112 Other operating items -13 1 Operating income 86 218 (*) Restated for discontinued activities
In the first half of 2012 the Group benefitted from a more favourable economic environment than in 2011, which improved its operating margins.
The average price of Brent was US$113.4 in the first half of 2012 versus US$111.1 in the corresponding period of the previous year. At the same time, the US dollar appreciated against the euro with an average exchange rate of 1.2972 in the first half of 2012, up 7.6% on the exchange rate of 1.4036 in the corresponding period of the previous year.
Exploration expenses reflect the impairment of drilled and negative wells, specifically Mounyouga NE (drilled in 2006), ETBIB-1 and ETGO-1 on the Etekamba permit in Gabon (€18 million) and the Ziwani-1 well in Tanzania (€11 million).
Other elements of operating income mainly relate to the provisioning of the Integra debt (Venezuela) in the amount of €12.5 million, reflecting the uncertainty over when this debt will be paid.
Most of the change between the first half of 2011 and the first half of 2012 is due to proceeds from the sale of assets (€112 million).
The Group's debt mainly consists of borrowings through two OCEANE bonds and an RBL (Reserve Based Loan) line of credit. The combined interest on these borrowings was €19 million during the first half of 2012.
The income from derivatives transactions (€8.3 million) arises from the reassessment of the fair value of trading hedges and the liquidation of positions in the first half of 2012.
The ongoing rise in the US dollar led to a foreign exchange gain of €14.6 million being reported, following the revaluation of the Group's foreign exchange positions at period end.
Financial income represented an expense of €5.6 million in the first half of 2012, compared with an expense of €73.5 million during the same period in 2011, with the change being linked to net foreign exchange differences.
The Group's net income before tax was €80 million. The corporation tax payable (€12 million) corresponds mainly to the taxation of the government's share of profit oil on the Omoueyi and Banio permits in Gabon (€14.5 million).
The deferred tax expense (€36 million) was mainly due to the accounting of the difference between fiscally recoverable costs, and the (consolidated) book value of those assets on the Omoueyi permit.
Group net income in the first half of 2012 was €32 million. The corresponding figure for the same period in 2011 included €112 million in proceeds from asset sales.
The Group's total investments in the first half of 2012 amounted to €136 million. Exploration expenses and development and production investments break down as follows:
in millions of euros Gabon Colombia Tanzania Namibia Other Total Exploration 21 7 10 2 4 44 Development 66 24 - - 3 93
At 30 June 2012, Maurel & Prom posted cash of €38.4 million. The main cash flows were:
• Investments during the period in the amount of €136 million;
• A dividend payment in the amount of €46 million;
• Cash flow from operating activities (+€157 million).
Group consolidated financial statements
In thousands of euros 30/06/2012 31/12/2011 Intangible assets 570,663 563,103 Property, plant and equipment 685,377 587,572 Non-current financial assets 13,738 8,844 Investments accounted for by equity method 83,561 81,031 Non-current derivative instruments 0 1,186 Deferred tax assets 7,170 8,133 Non-current assets 1,360,509 1,249,869 Inventories 7,165 9,240 Trade receivables and related accounts 78,240 60,246 Other current financial assets 52,504 71,437 Other current assets 42,256 31,002 Income tax receivable 0 21 Current derivative instruments 7,980 5,323 Cash and cash equivalents 38,583 60,771 Current assets 226,728 238,040 Total Assets 1,587,237 1,487,909
In thousands of euros 30/06/2012 31/12/2011 Share capital 93,565 93,550 Additional paid-in capital 221,410 221,199 Consolidated reserves 504,747 362,047 Treasury shares (76,797) (76,246) Net income, Group share 32,428 164,560 Equity, Group share 775,352 765,110 Non-controlling interests 1 1 Total net equity 775,353 765,111 Non-current provisions 7,024 7,206 Non-current bonds 348,586 338,271 Other non-current borrowing and financial debt 63,542 61,829 Other creditors and miscellaneous non-current liabilities (0) (0) Non-current derivative instruments 1,287 2,974 Deferred tax liabilities 157,542 118,755 Non-current liabilities 577,981 529,035 Current bond borrowing 17,915 10,968 Other current borrowings and financial debt 11,229 11,144 Trade payables and related accounts 101,786 78,059 Income tax payable 9,334 12,421 Other creditors and miscellaneous liabilities 77,682 53,118 Current derivative instruments 4,877 16,506 Current provisions 11,080 11,547 Current liabilities 233,903 193,763 Assets held for sale and discontinued operations 0 0 Total Liabilities 1,587,237 1,487,909
Net income for the period
In thousands of euros 30/06/2012 30/06/2011* Sales 225,900 182,726 Other income 635 476 Purchases and change in inventories (3,893) (9,018) Other purchases and operating expenses (40,218) (27,500) Tax expense (14,446) (13,065) Personnel expense (4,179) (5,030) Depreciation allowance (34,620) (17,649) Depreciation of exploration and production assets (30,037) (5,296) Provisions and impairment of receivables (12,481) (10) Reversals of operating provisions 4 1,103 Gain (loss) on asset disposals 0 111,638 Other expenses (555) 7 Operating income 86,110 218,382 Gross cost of debt (18,925) (20,461) Income from cash 443 2,086 Net gains and losses on derivative instruments 8,329 (2,527) Net cost of debt (10,154) (20,902) Other financial income and expenses 4,538 (52,626) Financial income (5,616) (73,528) Income before tax 80,494 144,854 Income tax (47,964) (51,742) Net income from consolidated companies 32,530 93,112 Net income from equity associates (102) (326) Net income from continuing activities 32,428 92,786 Net income from discontinued activities 0 (2,710) Gain/Loss on distribution (IFRIC 17) 0 Consolidated net income 32,428 90,076 Net income, Group share 32,428 90,076 Non-controlling interests 0 0 Earnings per share Basic 0.28 0.78 Diluted 0.25 0.74 Earnings per share from discontinued activities Basic 0.00 -0.02 Diluted 0.00 -0.02 Earnings per share from continuing activities Basic 0.28 0.81 Diluted 0.25 0.75 * restated for discontinued activities
Cash flow statement
In thousands of euros 30/06/2012 30/06/2011* Consolidated net income from continuing activities 80,394 144,527 - Net increase (reversals) of amortisation, depreciation and provisions 38,185 15,472 - Unrealised gains (losses) due to changes in fair value 10,615 975 - Exploration expenses 30,037 5,252 - Calculated expenses and income related to stock options and similar benefits 1,120 1,045 - Other calculated income and expenses 17,318 3,208 - Gains (losses) on asset disposals 0 (111,565) - Income (loss) from equity associates 102 326 - Other financial items 1,626 3,597 Cash flow before taxes 179,397 62,837 Payment of tax due (15,645) (10,087) Change in working capital requirements for activities (5,386) (55,087) - Customers (15,889) (45,914) - Suppliers 28,024 (13,432) - Inventories 2,267 2,274 - Other (19,788) 1,985 NET CASH FLOW FROM OPERATING ACTIVITIES 158,366 (2,337) Payments associated with acquisitions of property, plant and equipment and intangible assets (136,372) (73,080) Proceeds from disposals of property, plant and equipment and intangible assets 0 43,653 Payments associated with acquisitions of financial assets (unconsolidated securities) 0 (303) Proceeds from disposal of financial assets (unconsolidated securities) 0 34 Change in loans and advances granted 1,766 131,553 Other cash flows from investing activities 0 2,397 Net proceeds from discontinued activities 16,999 NET CASH FLOW FROM INVESTMENT ACTIVITIES (134,606) 121,253 Amounts received from shareholders for capital increases 225 199 Dividends paid (46,206) 0 Proceeds from new loans 1,770 74,391 Interest paid (1,626) (3,604) Borrowing repayments (111) (155,809) Treasury share acquisitions (551) 1,751 NET CASH FLOW FROM FINANCING ACTIVITIES (46,499) (83,072) Impact of exchange rate movements 452 20,537 CHANGE IN NET CASH (22,287) 56,381 Cash and cash equivalents at start of period 60,699 95,375 CASH AND CASH EQUIVALENTS AT END OF PERIOD 38,411 151,758 (*) Restated for discontinued activities
This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom.By nature, forward-looking statements 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 related to the valuation of our oil reserves, actual rates of oil production and the 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
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
For more information: http://www.maureletprom.fr