These half-year figures from Salamander Energy (SMDR) were largely in line with lowered expectations following the company's disappointing drilling programme in the North Kutei basin, offshore Indonesia, during the period.
Salamander drilled several wells in the basin but not enough were successful to justify commercial development. While management plans on returning to the basin early next year, pending an insurance claim payment, investors fear the worst and have sold off the shares accordingly.
Despite this, Salamander's other operations in south-east Asia have been ticking along nicely. Company-wide production climbed 39 per cent year on year to 14,900 barrels of oil-equivalent per day - driving an 87 per cent increase in operating cash flow to $183m (£117m). A $48m deferred tax charge, and a $109m exploration write-off, nevertheless resulted in an $83m after-tax loss.
Looking ahead, investor attention will turn to what's left of Salamander's exciting 2013 exploration programme. Exploration and development drilling near the producing Bualuang field, offshore Thailand, will continue over the coming months while some big onshore Indonesia gas prospects will be drilled later this year.
Deutsche Bank expects full-year pre-tax profit of $168m and adjusted EPS of 1¢ (from $11m and 24¢ loss per share in 2012).
SALAMANDER ENERGY (SMDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 123p | MARKET VALUE: | £318m | |
| TOUCH: | 122-123p | 12-MONTH HIGH: | 222p | LOW: 116p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 169¢* | NET DEBT: | 59% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 179 | 15.9 | -15.0 | nil |
| 2013 | 214 | 15.9 | -33.0 | nil |
| % change | +20 | - | - | - |
*Includes intangible assets of $305m, or 118¢ a share £1=$1.56 | ||||
