31st Jan 2019 13:57
LONDON (Alliance News) - President Energy PLC on Thursday guided for a swing to profit in 2018, while revenue is set to more than double.
President is looking at adjusted earnings before interest, tax, depreciation and amortisation of over USD16 million for the year, greatly improved from a USD1.4 million Ebitda loss in 2017.
President guided for revenue of USD47.2 million, well above the USD17.9 million recorded the year before.
Free cash generation rose fivefold in 2018, it said, to USD21.5 million from USD3.6 million. Operating costs fell 16% to USD29.50 per barrel year-on-year.
President said the results show that macroeconomic problems in Argentina have not affected the company.
Since the end of 2018 things have been going well, the company continued, with net production of 3,300 barrels of oil equivalent per day being sustained. Year-on-year production at the core Rio Negro assets are up 70%.
President has six well workovers as well as further reactivations planned, and will also give more details on a drilling programme for the second half of 2019 in due course.
Chair & Chief Executive Peter Levine said: "The unaudited management results for 2018 show significant progress was achieved across all areas of the business.
"We have established an impressive production platform in Argentina and have the potential to materially increase production near term through continued development drilling and exploration with our successful and highly motivated management team," Levine continued.
"With our established footprint within South America as well as our position as an established and reputable operator of all our assets; we continue to actively look at new opportunities with the intent of exponentially growing our business."
Shares were 2.2% higher on Thursday at a price of 9.20 pence each.
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