As expected, FTSE 250 listed oil producer and explorer Afren (AFR) delivered record headline figures for the 2012 full-year as daily oil production surged through operations on the Ebok and Okoro fields off the coast of Nigeria, while group reserves and prospects for future revenue streams were enhanced by an impressive exploration and appraisal success rate of 88 per cent.
The steep rise in revenues resulted from stable realised prices combined with a 123 per cent increase in Afren’s share of daily production to 43,059 barrels of oil equivalent (boe) - a rate of 40,000-47,000 boe (excluding the Kurdistan assets) is expected during the current year. The production hike also meant that operational cash flow soared to $935m (£615m) from $338m in 2011. Afren managed to record a 152 per cent hike in operating profits to $675m.
The group reported a highly encouraging reserves replacement ratio of 265 per cent, reflecting considerable operational headway during 2012, including three noteworthy discoveries at the Okoro Field Extension, the Ebok North Fault Block and - perhaps most significantly - at the Ain Sifni PSC in Kurdistan. In tandem with the results, Afren announced the acquisition of a 10.4 per cent stake in First Hydrocarbon Nigeria for around $37m.
BoA/Merrill Lynch anticipates EPS of 31¢ a share (2012: 18.7¢).
| AFREN (AFR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 150p | MARKET VALUE: | £1.6bn | |
| TOUCH: | 149.5-150p | 12-MONTH HIGH: | 162p | LOW: 93p |
| DIVIDEND YIELD: | nil | PE RATIO: | 12 | |
| NET ASSET VALUE: | 131¢* | NET DEBT: | 42% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 0.04 | -56 | -15.1 | nil |
| 2009 | 0.34 | 1 | -2.6 | nil |
| 2010 | 0.32 | 79 | 5.1 | nil |
| 2011 | 0.60 | 221 | 12.3 | nil |
| 2012 | 1.50 | 594 | 18.7 | nil |
| % change | +151 | +169 | +52 | - |
£1 = $1.52 *Includes intangible assets of $876m, or 80¢ a share | ||||
