Boosted by the recent , Premier Oil remains on track to reach its production target of 75,000 barrels of oil equivalent per day (boepd) in 2012. Output in the first six months was 46,600 boepd, up 17 per cent on the first half of 2009, and the company expects full-year production of around 44,000 boepd. Premier Oil aims to reach 100,000 boepd by around 2015.
Higher production was enhanced by higher oil prices (average $78 per barrel compared with $53 per barrel in the corresponding period). However, the pricing highlight was the Singapore gas market, where the average gas price rose 55 per cent, and Premier is gaining market share due to other producers being unable to meet their commitments.
Two key near-term growth projects are Chim Sao in Vietnam, which is 73 per cent complete and on schedule for first oil in mid-2011, and Gajah Baru in Indonesia, which is 64 per cent complete and on schedule for first gas in late 2011. Production from the Huntington light oil field in the North Sea is expected by 2012, although it could be sooner. A busy drilling schedule aims to add 200m barrels to reserves.
Subject to revision post these results, Evolution Securities forecasts full-year pre-tax profits of $326m and EPS of 119¢ (98.5¢ in 2009).
| PREMIER OIL (PMO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,482p | MARKET VALUE: | £1.72bn | |
| TOUCH: | 1,481-1,482p | 12-MONTH HIGH: | 1,610p | LOW: 984p |
| DIVIDEND YIELD: | nil | PE RATIO: | 13 | |
| NET ASSET VALUE: | 891¢* | NET DEBT: | 32% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 214 | 19 | -26.7 | nil |
| 2010 | 367 | 112 | 53.6 | nil |
| % change | +71 | +487 | - | - |
*Includes intangible assets of $249m, or 214¢ a share £1=$1.557 | ||||
