High oil prices allowed Premier Oil to mask indifferent North Sea production through 2011, but the group's long-term prospects have been enhanced by further exploration success in Asia, and the incorporation of the productive assets of Encore Oil.
Premier Oil's full-year revenues were buoyed by a 14 per cent rise in realised oil prices to $89.60 (£56.30) a barrel, which in turn drove operating profits up by 38 per cent to $176m to produce record net profits. Headline growth was achieved despite a 14 per cent rise in unit operating costs to $15.90 per barrel and a 5.6 per cent decline in average daily production to 40,400 barrels of oil equivalent (boe), which was wholly attributable to unplanned maintenance disruptions at some of Premier's UK assets. However, with the return of full UK output, and new contributions from the Chim Sao and Gajah Baru projects in Asia, Premier did manage to attain its planned year-end exit rate of 60,000 boe per day. Premier envisages average daily production of 60-65,000 boe through 2012.
The Encore Oil acquisition, together with additional equity in Wytch Farm, contributed towards a 13 per cent rise in Premier's proven and probable reserves to 296m boe.
Goodbody Stockbrokers forecasts 2012 EPS of 62.5¢ (35.2¢ in 2011).
| PREMIER OIL (PMO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 426p | MARKET VALUE: | £2.3bn | |
| TOUCH: | 426-427p | 12-MONTH HIGH: | 527p | LOW: 302p |
| DIVIDEND YIELD: | nil | PE RATIO: | 19 | |
| NET ASSET VALUE: | 250¢* | NET DEBT: | 55% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 578 | 147 | 9.8 | nil |
| 2008 | 655 | 278 | 24.8 | nil |
| 2009 | 621 | 80 | 26.0 | nil |
| 2010 | 764 | 101 | 28.0 | nil |
| 2011 | 827 | 142 | 36.6 | nil |
| % change | +8 | +40 | +31 | - |
£1 = $1.59 *Includes intangible assets of $316m, or 60¢ a share | ||||
