Full-year numbers for Amerisur Resources (AMER) don't look pretty, but require a large dollop of context. Of course, an average realised price of $42.85 (£30.47) per barrel was never going to help revenue or profit, but shareholders should remember that early in 2015 the South America-based explorer took a big decision to cut production until either the cross-border OBA pipeline was operational or the oil price rebalanced. Sensibly, the balance sheet and reserves base were put ahead of thinner short-term cash flows.
In the end, sales were even lower than analysts' forecasts, as Amerisur held back some crude production in December when WTI crude was around $30 a barrel. Once the OBA pipeline between Colombia and Ecuador is completed in May, production should steadily increase to 7,200 barrels a day by the end of the year. The scheduled drilling programme, together with additional capital expenditure for 2016, is likely to cost $62m, which is well funded from the balance sheet, improving cash flows and March's $35m capital raise.
Analysts at Stifel forecast an adjusted pre-tax loss of $24.9m and a 2.3¢ loss per share this year, against adjusted losses of $25.1m and 2.48¢ in 2015.
AMERISUR RESOURCES (AMER) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28.5p | MARKET VALUE: | £344m | |
| TOUCH: | 28.5p-28.8p | 12-MONTH HIGH: | 40p | LOW: 17p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 16¢ | NET CASH: | $42.3m* | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 14.0 | 4.0 | 0.2 | nil |
| 2012 | 42.0 | 20.0 | 1.4 | nil |
| 2013 | 169 | 75.3 | 4.5 | nil |
| 2014 | 199 | 47.5 | 2.6 | nil |
| 2015 | 61.2 | -25.1 | -2.5 | nil |
| % change | -69 | - | - | - |
£1=$1.41 *Excludes $35m fundraising post-period | ||||
