Latin America-focused oil and gas group GeoPark Holdings (GPK) has revised down its production guidance for the year - full-year production is now expected to come in at 11,000-12,000 barrels of oil equivalent per day (boepd), down from previous guidance of 13,700-15,200 boepd. Add that to the hefty share price rise since the start of 2012 and it's time to retire our buy tip.
GeoPark blamed these problems on “issues integrating new acquisitions, tie-in delays and flow rates from discoveries in Colombia being below initial expectations”. Chief executive James Park noted that “drilling results in Chile did not match our historical track record”.
Nonetheless, these first-half do highlight GeoPark’s impressive year-on-year growth so far - oil and gas production rose 87 per cent, revenues soared - reflecting the higher weight of oil in the production mix - and cash profits jumped 241 per cent year-on-year to $72.6m (£45m). Although that performance still missed analysts’ expectations significantly.
Broker Oriel Securities, meanwhile, has reduced its risked net asset value estimate to 938p per share from 1,006p per share and expects full-year EPS of 63.2p (2011: 8.1p).
GEOPARK HOLDINGS (GPK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 705p | MARKET VALUE: | £300m | |
| TOUCH: | 690-720p | 12-MONTH HIGH: | 755p | LOW: 440p |
| DIVIDEND YIELD: | nil | PE RATIO: | 29 | |
| NET ASSET VALUE: | 570¢ | NET DEBT: | 30% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 41.8 | 2.13 | 0.02 | nil |
| 2012 | 123 | 31.5 | 39.0 | nil |
| % change | +194 | +1379 | - | - |
£1=$1.62 | ||||
