Ophir Energy (OPHR), fresh from snaffling rival Salamander Energy (SMDR) earlier this month, revealed a full-year operating profit of $294m, reversing a $308m loss from the previous year. The turnaround was achieved through the sale of an interest in Tanzanian liquified natural gas (LNG) assets to Singapore's Pavilion Energy for nearly $1.3bn (£870m).
Even ignoring this successful farm-out deal, however, 2014 was a busy year for the frontier oil and gas explorer. Ophir drilled 11 exploration and appraisal wells, half of which were successful. Positive drill results in Equatorial Guinea and Tanzania fed into a creditable historic success rate of 66 per cent for the group's exploration and appraisal projects. New licences also added 47,000 square kilometres across four countries, doubling Ophir’s exploration acreage - though management stressed that the licences were granted with a low level of commitment spending.
That last point is significant as Ophir is trimming its sails in the face of weak prevailing energy prices. This year's capital commitment is $250-$300m - about half last year's level of $580m. The driller is also looking at ways to reduce overheads by $250m over the next two years.
Prior to these figures Investec Securities gave a risked exploration book value of 160p a share.
| OPHIR ENERGY (OPHR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 128p | MARKET VALUE: | £915m | |
| TOUCH: | 128-129p | 12-MONTH HIGH: | 270p | LOW: 113p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 32 | |
| NET ASSET VALUE: | 238¢ | NET CASH: | $1.2bn | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 0.5 | -19.3 | -6.0 | nil |
| 2011 | 14.7 | -19.1 | -7.0 | nil |
| 2012 | 1.0 | -40.9 | -10.2 | nil |
| 2013 | 0.01 | -280 | -45.0 | nil |
| 2014 * | 672 | 288 | 9.4 | nil |
| % change | - | - | - | - |
Ex-div:- Payment:- £1 = $1.48. *2014 revenues constitute funds from a farm-out agreement in Tanzania. | ||||
