Arriving almost six months after its financial year end, final results for Andes Energia (AEN) were unsurprisingly dislocated from the current investment story. Granted, the 3,502 barrels of oil equivalent being pumped every day at the end of March was in line with average production in 2016, and the company's balance sheet remains debt-laden.
But the broader picture has fundamentally shifted. With no forewarning, chief executive Alejandro Jotayan stepped down in March, and was replaced with Anuj Sharma, most recently head of commodity trading giant Mercuria's investments in Argentina.
Mr Sharma arrived with $60m (£47m) in two short-term credit facilities from Mercuria, providing fresh funds for Andes to drill new wells in the Chachahuen and Vaca Muerta fields. Despite guaranteeing the lender an internal rate of return of 15 per cent, the loans were welcomed by analysts who said the financial platform would unlock the potential in Andes' portfolio. This year's 86 well drilling programme is concentrated on the potential of the highly anticipated Chachahuen Sur development assets.
Stockdale expects net losses to narrow to $1.2m in 2017, which translates to an adjusted loss of 0.2p per share, before rebounding to a post-tax profit of $16.2m and 0.9p a share in 2018.
ANDES ENERGIA (AEN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 60p | MARKET VALUE: | £363m | |
| TOUCH: | 59-61p | 12-MONTH HIGH: | 69p | LOW: 14p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 7.5¢* | NET DEBT: | 189% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2012^ | 4.8 | -4.4 | -13.8 | nil |
| 2013^ | 22.5 | -0.1 | -0.1 | nil |
| 2014 | 48.2 | -7.9 | -2.1 | nil |
| 2015 | 66.8 | -12.4 | -2.7 | nil |
| 2016 | 67.8 | -28.4 | -3.8 | nil |
| % change | +1 | - | - | - |
Ex-div: na Payment: na £1=$1.29. *Includes intangible assets of $94.8m, or 16¢ a share. ^Turnover from continuing operations. | ||||
