In 2013, Green Dragon Gas (GDG) successfully resolved title issues linked to its development acreage in China. This indirectly resulted in a substantial step-up in its reserve base, and a share in production from coal-bed methane wells previously drilled by PetroChina and CUCBM without Green Dragon's consent.
Full-year revenues included a $32.4m (£19.3m) contribution from PetroChina for 2010-12 under the title agreement. The settlement with CUCBM was achieved after the year-end, so back-dated payments will be included in 2014. The company reduced its operating loss by 8 per cent to $9.3m, and Green Dragon would have booked a profit if administration expenses hadn't more than doubled to $29.5m.
Discounting the contribution from PetroChina, upstream gas production for the year was up 173 per cent to 4.86bn cubic feet (bcf). Moreover, May's reserves audit produced by Netherland, Sewell & Associates more than doubled Green Dragon's proven (1P) reserves to 126 bcf, excluding those wells drilled but not in commercial gas production by the 2013 year-end.
Broker Edison gives a core net asset value of 491p based on a phased hook-up of the third party wells.
| GREEN DRAGON GAS (GDG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 540p | MARKET VALUE: | £768m | |
| TOUCH: | 520-560p | 12-MONTH HIGH: | 675p | LOW: 178p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 455¢ | NET DEBT: | 7% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 46.9 | -28.8 | -27.6 | nil |
| 2010 | 49.7 | -10.4 | -7.9 | nil |
| 2011 | 75.2 | -25.2 | -20.5 | nil* |
| 2012 (restated) | 8.1 | -16.8 | -13.1 | nil |
| 2013 | 62.2 | -34.8 | -25.1 | nil* |
| % change | +665 | - | - | - |
Ex-div: - Payment: - £1=$1.68 *Excludes dividends paid in specie, comprising three shares in Greka Drilling and Greka Engineering | ||||
