Amerisur Resources (AMER) turned in operating profit of $51.5m (£31.7m) for the first six months of 2014 - a 69 per cent increase on the 2013 half-year result. The group's consistent profit growth over the past few years reflects a high success rate for drilling at its Platanillo field in Colombia. Platanillo has also ensured that Amerisur generates enough net cash flow to fund its exploration and development programmes.
Despite export constraints, Amerisur produced 6,561 barrels of oil per day (bopd) during the period, against a net average production rate of 4,730 bopd for 2013. But there's still upside on offer as the frontier oil and gas explorer has yet to tap the full potential of the field.
The ongoing development of a dedicated pipeline into Ecuador promises to increase export capacity significantly. Amerisur continues to rely upon expensive and somewhat unreliable road freight to shift its output from Platanillo. Production to the tune of 242,000 barrels was lost during the period because of logistical delays caused by national elections. Completion of the pipeline - possibly by the end of 2014 - will allow the driller to ramp up production and exports.
Broker Investec Securities anticipates full-year EPS of 6.5¢, rising to 8.9¢ in 2015.
| AMERISUR RESOURCES (AMER) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £608m | |
| TOUCH: | 56-57p | 12-MONTH HIGH: | 67p | LOW: 42p |
| DIVIDEND YIELD: | nil | PE RATIO: | 16 | |
| NET ASSET VALUE: | 20¢* | NET CASH: | $76m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 64 | 29.1 | 1.8 | nil |
| 2014 | 114 | 50.8 | 3.0 | nil |
| % change | +77 | +75 | +64 | - |
Ex-div:- Payment:- *Includes intangible assets of $32m, or 3¢ a share £1=$1.62 | ||||
