In terms of financial performance and oil and gas production, JKX's 2009 was hardly a year to get pulses racing. The group’'s output was focused on its existing Ukrainian operations with production beginning in Hungary shortly before the year-end. However, there's plenty of promise for more excitement in coming years, with plans to increase daily production of barrels of oil equivalent (boe) from the current 11,700 to 20,000 during 2011.
Much of the ground work for this production surge was put in place last year. The group has been connected to the Soyuz gas trunkline in the Ukraine, which will remove delivery constraints and underpin plans to expand production in the region following successful test results at its Rudenkovskoye field. It also plans to build a Ukrainian liquefied petroleum gas (LPG) facility.
Meanwhile in Russia, where there were better than expected test results last year, the group plans to undertake further testing while building a working gas processing facility by the autumn in anticipation of starting production at the end of 2010. JKX is also looking to double reserves and production in Hungary.
The group raised $61m (£40.5m) with a share placing following the year-end, which will help fund $230m of planned investment this year. Forecasts are under review following these results.
| JKX Oil & Gas (JKX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 286p | MARKET VALUE: | £490m | |
| TOUCH: | 285-286p | 12-MONTH HIGH: | 309p | LOW: 184p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 236¢ | NET CASH: | $74m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 83 | 51.3 | 25.1 | 1.1 |
| 2006 | 132 | 109.0 | 50.9 | 2.2 |
| 2007 | 185 | 113.0 | 47.9 | 4.4 |
| 2008 | 207 | 128.0 | 49.9 | 4.8 |
| 2009 | 197 | 119.0 | 54.2 | 5.0 |
| % change | -5 | -6 | 9 | 4 |
Ex-div: 21 Apr Payment: 11 Jun £1=$1.498 | ||||
