India-focused Hardy Oil & Gas is to undertake a comprehensive review of group strategy following a boardroom shake-up that has seen the departure of both the chief executive and the finance director. New chief executive Ian MacKenzie will lead the review, with recommendations to shareholders expected by the time of the half-year results in September.
Recently appointed chairman Alasdair Locke emphasises the group's need to generate a revenue stream. The PY-3 field – the group's only producing asset – has been offline since the end of July due to infrastructure needing to be upgraded. Discussions continue between the partners and contractors to conclude what Mr Locke stresses must be a "long-term development programme, not a short-term sticking plaster". However, in the meantime, Mr Locke doesn't expect any production from the field this year. As well as reviewing how best the group should develop and monetise existing assets, Mr Locke is clear that Hardy's aspirations should not be limited to India.
Arden Partners is forecasting a loss per share this year of 3.8¢ (2.4p), assuming no revenue in the year.
| HARDY OIL AND GAS (HDY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 147p | MARKET VALUE: | £107m | |
| TOUCH: | 144-150p | 12-MONTH HIGH: | 244p | LOW: 136p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 173¢* | NET CASH: | $36.5m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 11.8 | 10.6 | 14 | nil |
| 2008 | 17.3 | 12.4 | 12 | nil |
| 2009 | 7.70 | -7.35 | -10 | nil |
| 2010 | 13.2 | 0.09 | -1 | nil |
| 2011 | 11.3 | -4.60 | -3 | nil |
| % change | -14 | – | – | – |
*Includes intangible assets of $81.7m, or 112¢ a share £1=$1.57 | ||||
