Dutch-focused Northern Petroleum reduced its proven and probable (2P) reserves estimate by 15 per cent to 76.5m barrels of oil equivalent (boe) with these belated full-year figures - management did something similar last June, too. That won't help sentiment towards the shares, even though production rose by a decent 31 per cent in the year.
But higher realised gas prices, and that hefty production hike, did boost operating profits to €10.96m (£8.8m) from last year's €1.5m. The improvement would have been even more pronounced were it not for a €3.73m rise in depletion and amortisation charges. Meanwhile, strong cash flow has enabled the group to grow its cash pile by €8.4m in the year.
Northern remains on target to meet its first-half daily production target of 1,040 boe, too - although 2012 full-year guidance at 1,000 boe falls short of analysts' estimates. Much attention will now focus on the the group's Zaedyus oil discovery in Guyane - now operated by Shell - where a three or four well programme will commence in the next few months.
| NORTHERN PETROLEUM (NOP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 64p | MARKET VALUE: | £61m | |
| TOUCH: | 64-65p | 12-MONTH HIGH: | 98p | LOW: 59p |
| DIVIDEND YIELD: | nil | PE RATIO: | 12 | |
| NET ASSET VALUE: | 98¢* | NET CASH: | €29.8m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 5.93 | 30.0 | 29.7 | nil |
| 2008 | 6.95 | 11.6 | 14.1 | nil |
| 2009 | 5.08 | -3.12 | -2.90 | nil |
| 2010 | 15.0 | -0.02 | -1.30 | nil |
| 2011 | 24.5 | 10.5 | 6.70 | nil |
| % change | +63 | - | - | - |
*Includes intangible assets of €34.7m, or 36¢ a share £1=€1.24 | ||||
