Latin American oil and gas explorer specialist GeoPark (GPK) delivered a robust performance last year. While output estimates were revised down at the half-year stage, due to now-resolved problems integrating new acquisitions, output rose 49 per cent from 2011 to 11,276 barrels of oil equivalent per day (boepd). A higher weighting of oil to gas output helped lift the return per barrel of oil by 34 per cent from $30.8 (£20), too. So, overall, adjusted cash profit rose 92 per cent in 2012 to $121m.
Moreover, 2P (proven and probable) reserves rose 15 per cent to 56.9m barrels of oil equivalent (mmboe). Turnover was also boosted by the acquisition of two Colombian companies - Winchester Oil & Gas and Hupecol - for a combined $105m. The group has developed its existing inventory as well, with operations starting on the Chilean Flamenco and Campanario blocks, while the Tranquilo block delivered the first gas discovery there for 40 years. Overall, $195m was invested in 44 new wells, bringing total expenditure including acquisitions to around $300m. Since the year-end, the group also raised $300m through a bond issue which, after repaying borrowings, has left the group with access to funds of $179m as at end-March.
Prior to these figures, broker Oriel Securities estimated the group's risked net asset value at 938p a share. But, given that GeoPark is targeting an annual production increase of up to 25 per cent in the current year, the broker expects to upgrade that.
| GEOPARK (GPK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 640p | MARKET VALUE: | £278m | |
| TOUCH: | 640-665p | 12-MONTH HIGH: | 755p | LOW: 562p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 35 | |
| NET ASSET VALUE: | 550¢ | NET DEBT: | 46% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 38.4 | 3.90 | 11.0 | nil |
| 2009 | 44.8 | -7.50 | -22.0 | nil |
| 2010 | 79.6 | 9.00 | 10.0 | nil |
| 2011 | 112 | 12.3 | 0.13 | nil |
| 2012 | 250 | 32.8 | 27.8 | nil |
| % change | +123 | +167 | +21285 | - |
Ex-div: na Payment: na £1=$1.53 | ||||
