Skip to main navigation or content
You are here:
Last year marked a watershed for Russia-based oil company Sibir Energy, as the ramp-up of its Salym field in western Siberia saw annual group production increase 150 per cent to 9.9m barrels and cash earnings increase sevenfold to £87m. So, although it doesn't enter Sibir’s top line, as it's a 50/50 joint venture with Shell, Salym has pushed the company back into the black after five years of losses. Shareholders have therefore been rewarded with a maiden dividend.
Advertising
What's more, growth at Salym will continue to boost Sibir. From a year-end group production figure of 38,901 barrels of oil per day (bopd), the current figure is 47,000bopd and it's now expected to reach 60,000bopd by the year-end. The balance sheet has been transformed, too, with a share placement paying off Salym-related debt to leave Sibir with net funds. The downstream investment in BP-branded petrol stations across Moscow is about to pay its first dividend, too, with Sibir describing their financial performance as 'truly extraordinary'.
Broker Jefferies International is anticipating full-year 2007 EPS of 35p, subject to revision following these results.
| AIM: SIBIR ENERGY (SBE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 433p | MARKET VALUE: | £1,372m | |
| TOUCH: | 433-434p | 12-MONTH HIGH:LOW | 498p | 391p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 211p | NET FUNDS: | £6.5m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2002 | 22.5 | -10.5 | -2.1 | nil |
| 2003 | 17.4 | -13.7 | -0.8 | nil |
| 2004 | 168.1 | -30.5 | -17.3 | nil |
| 2005 | 357.2 | -10.9 | -10.6 | nil |
| 2006 | 604.6 | 58.3 | 16.8 | 7.0 |
| % change | +69 | - | - | - |
Ex-div: 01 Aug Payment: 16 Aug |
||||
Russian political risks means that Sibir's shares trade on a heavy discount to the net present value of its reserves. That may be justified, but a rating of just 7.5 times 2008 earnings estimates isn't. Buy.
Last IC View: Fairly priced, 446p, 6 October 2006
Enter IC's Fantasy Portfolio competition for the chance of winning £1,000 or a luxury golf weekend, courtesy of ETX Capital and Celtic Manor.
The only way to access our daily share tips, analysis and profit making tools is with an IC Advantage subscription, and you can sign up for a free two week trial here.
Profit from our latest investment - Trial IC Advantage for free today
Advertorial Feature
Have you ever watched a move in the markets that you saw coming, but you weren't able to exploit?
by Dominic Picarda
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Picarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.6.1b-prod - 17/12/2008 12:46:12 - jonathan.furseftb
