6th Aug 2019 12:33
(Alliance News) - President Energy PLC on Tuesday said sales were up in the first half of the year and average production was up as well, overcoming lower sales prices and issues in Argentina and Louisiana in the US.
Revenue for the six months to June 30 was around USD23.5 million, 7.3% higher than the GBP21.9 million revenue posted the year before despite average sales prices having fallen year-on-year.
Average net production for the interim period was approximately 2,500 barrels of oil equivalent per day, an 8% rise over the average for 2018, overcoming operational outages as well as shut-ins in Louisiana and Argentina.
Bank debt was down at USD2.8 million on Tuesday this week, having been USD10.2 million at the start of the year.
Adjusted earnings before interest, depreciation, taxation, and amortisation was about USD8 million, up from USD6.1 million.
Given the "increasingly better second half in prospect" versus the first half, President Energy is now expecting an adjusted group Ebitda "of some USD20 million".
President Energy's average production guidance target for the second half is to be announced along with its first half results in late September.
Chair Peter Levine said: "President has delivered positive results in H1, notwithstanding the headwinds as previously announced which should now, step by step, be receding in the rear-view mirror.
"In the space of only some 20 months President has enjoyed a period of transformative progress including the successful integration of four valuable acquisitions, a strategic pan-regional pipeline, the bringing on of new production, generation of positive cash flow and attaining good margins. Despite this, President's share price, uncoupled from such progress, has dropped some 35% in value during that time.
"President, remains confident as to its future prospects and success as an energy business and is examining initiatives to deliver value for shareholders."
On Tuesday, shares in President Energy were up 2.2% at 6.70 pence.
Operationally, the company's workover programme is ongoing. President Energy also has another 1,100 barrels of oil per day "ready to produce" provided surface facilities are completed. This excludes the Louisiana Triche well, where production depends upon a workover which is still ongoing.
More hydrocarbon production is predicted "in due course" as well from sub-surface programmes.
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PPC.L