There were two particularly noteworthy developments for Wentworth Resources (WRL) in the first half. Firstly, the Africa-focused driller has achieved a significant step-up in gas sales in Tanzania following the commissioning of a new pipeline this time last year. The second relates to an agreement with the government of Mozambique to increase Wentworth's participatory interest in the Onshore Rovuma Block to 85 per cent, in addition to its appointment as operator. The company also got the go-ahead for a two-year appraisal programme at the highly promising Tembo-1 gas discovery.
Second quarter revenues from gas sales came in at $3.43m (£2.66m) against $0.29m a year earlier, which effectively brought net losses for the period down to $0.17m from $1.81m in the corresponding period. Pipeline volumes have been ramped up in accordance with the development plan, but have been held in check at around 50m cubic feet a day (mmcf/d) due to a dispute between one of the power plants that relies on Mnazi Bay gas and the state controlled power supplier Tanesco. Once resolved, it’s thought that volumes could increase by as much as 60 per cent from current levels.
Analysts at Stifel predict pre-tax profits and EPS of $9.5m and 5.58¢, respectively, for the December year-end, rising to $18.5m and 10.9¢ in 2017.
| WENTWORTH RESOURCES (WRL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 26.5p | MARKET VALUE: | £45m | |
| TOUCH: | 26-27p | 12-MONTH HIGH: | 36p | LOW: 25p |
| DIVIDEND YIELD: | nil | PE RATIO: | 2 | |
| NET ASSET VALUE: | 106¢ | NET DEBT: | 10% | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | 0.6 | -4.5 | -3.0 | nil |
| 2016 | 6.6 | -0.7 | -1.0 | nil |
| % change | +1077 | - | - | - |
Ex-div:- Payment:- £1=$1.29 | ||||
