20th Mar 2019 09:29
LONDON (Alliance News) - Eland Oil & Gas PLC is looking at another year of progress in 2019, the company said Wednesday, after posting its first ever annual profit.
Nigeria-focused Eland posted a pretax profit of USD77.6 million in 2018, its maiden profit, after a pretax loss of USD15.6 million in 2017.
Revenue for 2018 surged to USD169.1 million from USD68.9 million, as production climbed to an average of 8,000 barrels of oil per day net to its Elcrest joint venture, from 3,934 barrels in 2017.
The exit rate from the OML40 field in Nigeria at the end of 2018 was 13,240 barrels of oil net to Elcrest, a record figure.
Looking to 2019, Eland expects 2019 production to be in the range of 14,000 barrels of oil per day to 17,000 barrels net to Elcrest, with ongoing production from the Opuama region, on which OML40 is situated, to be supplemented by new output from the Gbetiokun and Ubima projects.
Eland also said on Wednesday it is to double the size of its existing share buyback programme, to GBP6 million from GBP3 million. It has so far bought back GBP2.8 million of the original GBP3 million in shares.
"The board continues to believe the current share price undervalues the group's assets, the performance of the business to date and its future prospects," said Eland.
"The group's robust balance sheet provides the opportunity to enhance shareholder return through both the continued development and growth of Eland's resource base, as well as the company's increased capital allocation policy."
Shares were 0.8% higher on Wednesday morning at 123.00 pence each.
Eland in February had said it would be paying dividends in 2019, and it has reiterated this decision.
"2018 was a ground-breaking year for Eland. Record oil production, revenue and profit, and confirmation of a 20-year extension to the OML40 licence allows us to continue our investment in this world-class asset," said Chief Executive George Maxwell.
"As well as our continuing investment in the Opuama oil field, in 2018 we accelerated the development of the Gbetiokun and Ubima oil fields, both of which are expected to contribute to a material increase in production and cash flow in 2019."
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