Full-year financials for LekOil (LEK) may have sent shares in the West African driller northwards on the day, but their value is somewhat diluted. That's because they are six months out of date, and omit from the balance sheet several new loans and corporate activity.
Since the year-end, LekOil has refinanced the $10m bridge facility it took on in May 2015 under a new three-year term, and added a $17.7m loan this month from Sterling Bank. This second loan is also for three years, repayable quarterly at an interest rate 10 per cent above the Nigerian Interbank Offered Rate. That puts the explorer into a net debt position, but also provides the funding to complete the Otakikpo field development plan, which should culminate in the production of 10,000 barrels of oil a day by the end of 2016.
LekOil may soon be dipping into the coffers further, if Nigeria's oil minister grants assent to LekOil's $13m bid for the 23 per cent stake in the OPL 310 field held by Afren before its collapse last year. Analysts at Stifel Securities are forecasting adjusted pre-tax profits of $20.4m in 2016 ($18.7m in 2015), giving EPS of 2.4¢.
LEKOIL (LEK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 19p | MARKET VALUE: | £92m | |
| TOUCH: | 18-19p | 12-MONTH HIGH: | 31p | LOW: 13p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 41¢ | NET CASH: | $17.8m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011* | nil | -4.2 | -64.0 | nil |
| 2012* | nil | -3.8 | -5.0 | nil |
| 2013 | nil | -18.1 | -10 | nil |
| 2014 | nil | -11.9 | -1.0 | nil |
| 2015 | nil | -18.7 | -3.0 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na £1=$1.34 *Pre-IPO | ||||
