On 2 June, President Energy (PPC) released audited results for its last financial year, 153 days after the period-end. Many investors - including chairman Peter Levine - might count 2016 as a time to forget, but the belatedness of this filing begs the question as to why companies should bother posting their figures at all.
The headlines are fairly meaningless now. Group production edged up 3 per cent to 506 barrels of oil equivalent per day on the 2015 numbers, but has now more than doubled as President's work-over programme continues to target 1,200 barrels from Argentina alone by the end of September. Low-cost, low-volume production from Louisiana, which witnessed natural declines and operational issues in 2016, has now shifted thanks to April's acquisition of seven years' worth of production equivalent to 150 barrels a day, for a total consideration of up to $2.65m (£2.05m).
The big surprise for analysts was the one-off impairment charge of $10.9m related to the operational disaster at the DP-1002 S/T well at Dos Puntitas, which led to a cash shortfall and precipitated November's equity fundraising and loan restructuring. While that led to a big dent in the profit and loss account, the company is pursuing legal claims against the Argentine subsidiaries of Weatherford International and Helmerich & Payne.
On average, analysts expect pre-tax profits of $1.95m and zero EPS for the December year-end, against losses of $6.8m and 1.2¢ per share in 2016.
PRESIDENT ENERGY (PPC) | ||||
---|---|---|---|---|
ORD PRICE: | 7p | MARKET VALUE: | £62m | |
TOUCH: | 6.5-7p | 12-MONTH HIGH: | 14p | LOW: 5.5p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 15.5¢* | NET CASH: | $8.5m |
Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2012 | 11.3 | -6.3 | -3.4 | nil |
2013 | 13.4 | -4.5 | -0.6 | nil |
2014 | 12.6 | 14.3 | 3.7 | nil |
2015 | 10.1 | -18.7 | -3.9 | nil |
2016 | 9.9 | -20.5 | -2.5 | nil |
% change | -2 | - | - | - |
Ex-div: na Payment: na £1=$1.29 *Includes intangible assets of $103m, or 11¢ a share. |