Despite mixed fortunes in exploration, Salamander Energy (SDMR) doubled gross profits to $525m (£315m) last year as output stepped up at the key Bualuang oil field off the coast of Thailand. The improved trading environment also drove a 44 per cent increase in cash generated from operations to $368m.
Salamander revealed that average daily production rose by nearly a third to 14,200 barrels of oil equivalent per day (boepd), with the contribution from Bualuang at 12,300 boepd. The size and commercial lifespan of Bualuang has substantially outstripped initial expectations. Estimates of so-called contingent resources (those yet to be proven commercially viable) have risen by 129 per cent to 27.8m barrels, and a new floating storage and offloading vessel is expected at Bualuang during the second half of this year.
The driller now believes its certified reserves could underpin a run rate of 20,000 boepd by 2017, while the success of the recent West Kerenden-1 exploration well in Indonesia points to further upside. However, Salamander's post-tax earnings stayed in the red last year, largely as a result of $162m in exploration write-offs for drilling and seismic work in North Kutei, off the Indonesian coast.
| SALAMANDER ENERGY (SMDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 105p | MARKET VALUE: | £270m | |
| TOUCH: | 104-105p | 12-MONTH HIGH: | 222p | LOW: 95p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 156¢* | NET DEBT: | 65% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 157 | -3 | -9 | nil |
| 2010 | 323 | -114 | -110 | nil |
| 2011 | 408 | 113 | -29 | nil |
| 2012 | 368 | 11 | -32 | nil |
| 2013 | 482 | 47 | -46 | nil |
| % change | +31 | +338 | - | - |
*Includes intangible assets of $311m, or 121¢ a share £1=$1.67 | ||||
