23rd Aug 2018 08:24
LONDON (Alliance News) - Premier Oil PLC on Thursday reported a widened interim loss but said it met all of its operational targets during the period.
For the six months to June, the oil producer's revenue was USD625.0 million, higher than the USD546.1 million recorded for the same period a year prior, boosted by higher oil prices.
Premier's pretax loss was USD24.7 million versus USD3.6 million a year ago, driven by a rise in finance costs as well as a loss on an asset disposal.
The finance costs mainly relate to higher long-term debt arrangement fees, as well as large increase in derivative losses.
However, Premier's earnings before interest, taxes, depreciation, and amortisation rose 19% year-on-year to USD388.9 million, and it has reduced net debt slightly to USD2.65 billion from USD2.72 billion. Net debt is guided to fall a further USD300 million to USD400 million by the end of 2018.
The company's cash flow from operations was USD276.6 million, down marginally from USD282.7 million a year prior.
Production for the period was 76,200 barrels of oil equivalent a day, down 7.2% year-on-year, which Premier said was due to sold off assets as well as natural field declines. In July, post-period end, production was 86,200 boepd, down from 76,700 boepd in July 2017.
Premier's Catcher field, in the North Sea, has now reached plateau production, and overall production guidance for 2018 is maintained at 80,000 boepd to 85,000 boepd.
Premier hopes to start building the platform at its newly-sanctioned Tolmount project, also in the North Sea, in December, and it is to also start appraising its Zama project offshore Mexico during the fourth quarter of 2018.
Shares were 1.6% higher on Thursday in early trade at 123.39 pence each.
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