Net earnings for Nostrum Oil and Gas (NOG) were down by a third to $146m (£98.6m) due to a slight fall in production and the slide in global crude prices in the second half of 2014.
The FTSE 250 constituent, formerly known as Zhaikmunai LP, secured a premium listing on the London Stock Exchange last year. The principal producing asset of Nostrum is the Chinarevskoye field in Kazakhstan, and it has started appraisal work on the Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye fields, also located in the pre-Caspian basin. The group's proven and probable (2P) reserve base currently stands at 571m barrels of oil equivalent (boe).
This year, three production wells and one appraisal well will be drilled on the Chinarevskoye field and there is a further appraisal well planned for the Rostoshinskoye field. Daily production is being pitched at around 45,000 boe over the next two years, prior to an increase to 70,000 boe in 2017, and then to 100,000 boe in the following year. To aid this expansion, Nostrum is developing the GTU3 gas processing plant. With a total cost of around $520m, GTU3 is expected to be brought into service towards the end of next year.
Deutsche Bank gives a target price of 650p a share.
| NOSTRUM OIL & GAS (NOG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 610p | MARKET VALUE: | £1.1bn | |
| TOUCH: | 602-612p | 12-MONTH HIGH: | 825p | LOW: 370p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 488¢ | NET DEBT: | 59% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 301 | 149 | 44.0 | 32 † |
| 2012 | 737 | 282 | 87.0 | 34 † |
| 2013 | 895 | 362 | 118 | 35 † |
| 2014 | 782 | 312 | 79.0 | 27 |
| % change | -13 | -14 | -33 | -23 |
Ex-div: 4 Jun Payment: 26 Jun £1 = $1.48. †Pro forma rate on depositary receipts. | ||||
