Twelve months ago, Amerisur Resources (AMER) said output from its Colombian wells would average between 6,000 and 7,000 barrels of oil per day (bopd) in 2017, finish the year on more than 7,000 bopd, and climb to 20,000 bopd by the end of 2019.
To no great surprise – owing to the two operational suspensions brought about by social unrest in the Putumayo basin area – preliminary numbers for 2017 missed those heady initial targets. Group production averaged 4,850 bopd and now sits at 6,500 bopd, while the reference to the 20,000 bopd was last referenced in half-year results as a “medium term” focus. It’s better to under-promise and over-deliver, as they say.
Still, onwards and upwards, as they also say. With the OBA pipeline’s strong operating margins acting as a backstop, Amerisur is doubling down on the exploration programme – now extended to 14 fully-funded wells this year, and which is targeting 131.5m barrels of unrisked prospective resources. That, investors will hope, will reverse the 15 per cent decline in proven gross field reserves seen last year, and provide encouragement that Amerisur can sustain its “medium term” production aspirations.
On average, analysts expect adjusted pre-tax profits of $28.7m and EPS of 1.8¢ in 2018, against estimates of $2.9m and 0.1¢ last year.
| AMERISUR RESOURCES (AMER) | ||||
| ORD PRICE: | 15.4p | MARKET VALUE: | £187m | |
| TOUCH: | 15.4-15.6p | 12-MONTH HIGH: | 27p | LOW: 13p |
| DIVIDEND YIELD: | nil | PE RATIO: | 21 | |
| NET ASSET VALUE: | 17¢ | NET CASH: | $41.3m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2013 | 169 | 75.3 | 4.5 | nil |
| 2014 | 199 | 47.5 | 2.6 | nil |
| 2015 | 61.2 | -25.1 | -2.5 | nil |
| 2016 | 47.2 | -29.4 | -2.4 | nil |
| 2017 | 92.5 | 0.63 | 1.0 | nil |
| % change | +96 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.43 | ||||
