A year ago, Ophir Energy (OPHR) announced it was tearing up the high-risk, speculative oil playbook, in favour of a commitment to "find low, monetise smartly". The company made some ground on this pledge in 2016, pushing ahead with plans to spud the Ayame-1X well in Côte d'Ivoire, while the Tanzanian LNG project, in which the energy company now owns a 20 per cent stake, counts Shell as an operator. In the latter case, and despite some disappointing results, Ophir is confident that a final investment decision will be accelerated, albeit to a vague promise for "later this decade".
Of course, the Fortuna project offshore Equatorial Guinea remained the main focus in 2016, as it will do this year. And while the creation of a venture with Schlumberger and Golar LNG to finance and develop the field may have sacrificed a good chunk of Ophir's eventual take, the London-listed group will not incur "any additional balance sheet exposure or liabilities". A final investment decision on the project, expected in the summer, is set to be based on a net present value representing "a healthy multiple" of the $120m (£99m) committed before first gas.
Market consensus is for a pre-tax loss of $1m and a 3¢ loss per share in 2017, and a pre-tax profit of $23.9m the year after (loss per share of 1.3¢).
OPHIR ENERGY (OPHR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 87p | MARKET VALUE: | £613m | |
| TOUCH: | 86.5-87p | 12-MONTH HIGH: | 103p | LOW: 64p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 223¢ | NET CASH: | $160m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 1.0 | -40.9 | -10.2 | nil |
| 2013 | neg | -280 | -45.0 | nil |
| 2014 | neg | 288 | 9.4 | nil |
| 2015 | 161 | -376 | -47.1 | nil |
| 2016 | 107 | -50.1 | -11.0 | nil |
| % change | -33 | -87 | - | - |
Ex-div: na Payment: na £1=$1.22 | ||||
