After a terrible first year or so on the London Stock Exchange - the shares have slumped nearly 90 per cent since April 2012 - Russian oil producer RusPetro (RPO) has made some positive steps towards a partial recovery in 2013.
The company has shaken up its management team, replacing high-profile chief executive officer Don Wolcott with former chief financial officer Tom Reed, and has brought in several new independent directors. It also raised $30m (£19.2m) from offtake partner Glencore Xstrata (GLEN) through a non-dilutive pre-payment facility, meaning the company now has sufficient working capital available to continue appraising its low-permeability oil fields in western Siberia. Most importantly, however, RusPetro has restructured its loans with Sberbank - net debt totalled a staggering $376m at end-June - which gave the company a two-year interest payment holiday and a three-year extension on repayment of the principal.
Further positive news came in July when Russia passed into law mineral extraction tax relief for certain tight oil fields. Starting from 1 September, RusPetro's well-head revenues are expected to increase to $39.10 a barrel from $22.40, assuming $100-a-barrel international oil prices. This will help offset expected a natural decline in oil output in the second half, as no development drilling is currently taking place because of a lack of funding.
RUSPETRO (RPO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 29p | MARKET VALUE: | £97m | |
| TOUCH: | 29-30p | 12-MONTH HIGH: | 129p | LOW: 14p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 35¢* | NET DEBT: | 322% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 33.8 | -26.4 | -9.00 | nil |
| 2013 | 42.5 | -50.1 | -15.0 | nil |
| % change | +26 | - | - | - |
*Includes intangible assets of $396m, or 119¢ a share £1=$1.56 | ||||
