In its full-year results released in March, Ophir Energy (OPHR) pledged to redefine itself by placing "net asset value (NAV) creation at the forefront of everything we do". Six months on, and the balance-sheet-derived NAV per share has fallen slightly.
The main reason for this was a precipitous drop in cash, from $615m (£466m) to $407m. Cash reserves totalling $59m were used to reduce debt, after management decided to defer the refinancing of its facilities until "more favourable market conditions" emerge, while a further $113m was invested in the portfolio. A $36m cash-based tax payment meant operating cash generation was negative and below analyst forecasts. And although full-year capital expenditure guidance has now been reduced from $150m-$200m to as low as $140m, top-end expectations for the year-end net cash position have also been cut from $250m to $225m.