Petroceltic International (PCI) has quelled uncertainties over its near-term funding position with a $100m (£59m) placing. The MENA-focused driller has found a new strategic investor in Dovenby Capital, which stumped up half the proceeds in exchange for an 8.88 per cent stake and a board appointment. It will probably put forward Dato' Ahmad Fuad - Dovenby's chief and a former deputy chairman of Malaysian oil-services group Bumi Armada Berhad.
The funds serve two functions. First, they tide Petroceltic over until it receives money from a second deal on the Ain Tsila project in Algeria, whereby state-owned oil company Sonatrach increased its stake in return for $20m. Although the start of production at Ain Tsila has been pushed back a year to 2018, the project still needs cash.
Second, the funds will be used to accelerate the company's programme in Kurdistan with US major Hess Corp. That includes the planned drilling at the Shireen-1 exploration well in the Dinarta block later this month. Test results are expected shortly for the final targets in the Shakrok well, but it has disappointed so far. The Dinarta block is viewed as a more promising prospect.
The company's revenues last year fell slightly short of market expectations. Excluding exploration write-downs, however, Petroceltic increased operating profits to $52.4m (2012: $4m).
| PETROCELTIC INTERNATIONAL (PCI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155p | MARKET VALUE: | £272m | |
| TOUCH: | 154-155p | 12-MONTH HIGH: | 188p | LOW: 129p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 291¢* | NET DEBT: | 48% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 0.2 | -6.1 | -0.5 | nil |
| 2010 | 0.3 | -12.6 | -0.7 | nil |
| 2011 | 0.4 | -8.2 | -0.4 | nil |
| 2012 | 59.4 | -6.7 | -17.8 | nil |
| 2013 | 196.7 | -4.5 | -10.7 | nil |
| % change | +231 | - | - | - |
*Includes intangible assets of $126m, or 71¢ a share £1=$1.68 | ||||
