Investors needn't pay much attention to these full-year figures from Victoria Oil & Gas (VOG), a gas producer looking to supply local industry in Cameroon's commercial capital, Douala. Instead, the speed of the ramp up in operations since then is of much more importance.
In July, Victoria successfully began continuous production from its Logbaba field nearby - albeit a few months behind schedule. The company had its first three customers lined up by then, all of which had completed the conversion requirements necessary to accept gas. But, as of 25 October, only one additional customer was accepting gas, reflecting poor initial customer take up of its services.
Indeed, Victoria is only selling about 0.7m cubic feet of gas per day at the moment, much less than initially hoped for because of high upfront conversion costs and shoddy installation by local companies. Yet it has ambitiously maintained its daily target of selling 5m cubic feet by the end of calendar 2012, aiming for at least 10 more thermal customers and a couple of new power customers - potentially setting the company up for another set of disappointing half-year figures next year.
Prior to the results, broker Macquarie forecast EPS for fiscal 2013 of 0.3¢ (a loss per share of 0.3¢ in 2012).
VICTORIA OIL & GAS (VOG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2.19p | MARKET VALUE: | £59m | |
| TOUCH: | 2.19-2.22p | 12-MONTH HIGH: | 5.05p | LOW: 2.15p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 3.5p | NET DEBT: | 8% | |
| Year to 31 May | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.73 | -1.17 | 0.70 | nil |
| 2009 | nil | -42.36 | -11.91 | nil |
| 2010 | nil | -6.11 | -0.60 | nil |
| 2011 | nil | -4.70 | -0.26 | nil |
| 2012 | nil | -7.73 | -0.33 | nil |
| % change | - | - | - | - |
£1=$1.60 | ||||
