Amerisur Resources (AMER) posted an operating loss of $6.5m (£4.3m) for the six months to the end of June, against a profit of $51.5m at the 2014 half-year mark. The fall in crude prices has taken its inevitable toll on revenues, while earnings slipped into the red on the back of an $11.3m write-down in reserves following an estimate revision by Petrotech Engineering.
With oil prices in the doldrums, management took the decision to limit production - and thus, pending the completion of an interconnector pipeline system into Ecuador, transportation costs. As a consequence, production fell by 31 per cent from the average rate achieved during 2014 to 4,524 barrels per day (bopd). Yet management anticipates building production once the pipeline is launched during the final quarter. Until then, the South America-focused driller is intent on preserving its reserve base and shoring up its balance sheet.
Cenkos anticipates a loss of 1¢ a share for the 2015 full-year, against EPS of 2.58¢ in 2014. The broker expects the income statement to swing back into the black with EPS of 6.2¢ in 2016.
| AMERISUR RESOURCES (AMER) | ||||
|---|---|---|---|---|
| ORD PRICE: | 24p | MARKET VALUE: | £254m | |
| TOUCH: | 23-24p | 12-MONTH HIGH: | 58p | LOW: 20p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 19¢ | NET CASH: | $55.6m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | 114 | 50.8 | 3.0 | nil |
| 2015 | 40.3 | -5.8 | -0.6 | nil |
| % change | -65 | - | - | - |
Ex-div:- Payment:- £1 = $1.52 | ||||
