Strong performances from Exillon Energy ’s (EXI) oil fields in two provinces of Northern Russia helped swing the company into a net profit in 2012 from a loss in 2011. Oil production rose 45 per cent year-on-year to 12,800 barrels per day (bopd), helping cash profits more than double to $46.1m (£30.7m). What’s more, the company finally met its production guidance - albeit a year behind schedule - by achieving a year-end exit rate of over 17,000 barrels per day.
Infrastructure upgrades also helped deliver profit margin growth. Cash profits rose to $13.2 per barrel of oil produced in West Siberia (2011: $9.3/bbl) and $9.5 per barrel in Timan-Pechora (2011: $7.3/bbl). The onerous Russian tax regime continues to take its toll, though - export duties and mineral extraction taxes there add up to $72 per barrel, according to Standard Bank Group.
Looking ahead, Exillon plans to boost production by around 4,000 to 6,000 bopd each year to 2018 in order to take advantage of its sizable reserve base. It plans to do this by drilling 21 new wells this year - up from 16 in 2012 - mainly in the higher-margin West Siberia operation. Management also expects to release an updated reserves report in April.
Broker Investec forecasts normalised pre-tax profit of $20m and EPS of 10¢ in 2013, rising to $69.3m and 34.6¢ in 2014 (2012: $17.5m and 8¢).
EXILLON ENERGY (EXI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155p | MARKET VALUE: | £250m | |
| TOUCH: | 153-157p | 12-MONTH HIGH: | 227p | LOW: 85p |
| DIVIDEND YIELD: | nil | PE RATIO: | 29 | |
| NET ASSET VALUE: | 351¢ | NET CASH: | $20.7m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 22 | 180.1 | * | * |
| 2010 | 85 | -3.8 | -3.0 | nil |
| 2011 | 203 | -7.6 | -7.0 | nil |
| 2012 | 302 | 17.5 | 8.0 | nil |
| % change | +49 | - | - | - |
*Prior to listing £1=$1.50 | ||||
