31st May 2016 08:03
LONDON (Alliance News) - SacOil Holdings Ltd on Tuesday said it expects to post positive earnings per share for its recently ended financial year, swinging from a loss per share the prior year, after it benefited from foreign exchange gains and the restructuring of its portfolio.
SacOil shares were trading up 10% at 0.910 pence on Tuesday morning.
Johannesburg-based SacOil said its basic earnings per share for the year ended February 29 are expected to be between 1.23 US cents and 2.05 US cents, compared to the 8.54 cents loss it reported a year earlier. Basic headline earnings per share, which exclude the impact of any re-measurements of assets or liabilities, are expected to be between 0.57 cents and 0.51 cents, SacOil said, representing an increase from the headline loss per share of 4.67 cents the previous year.
Net asset value per share as at February 29 is expected to be between 24.23 cents and 25.67 cents, compared to 24.10 cents a year earlier, SacOil added.
The Africa-focused oil and gas company said its results have benefited from the depreciation in the South African rand in relation to the US dollar, meaning it made around USD9.7 million in foreign exchange gains.
SacOil said that during the year it also continued with its strategy to balance its existing portfolio of assets, and completed the reorganisation of its holding in Block III in the Democratic Republic of Congo. Following this, SacOil had a direct holding in Block III, and the reorganisation resulted in a gain of around USD6.5 million.
SacOil also completed the Phase 2 development activities at the Lagia oil field in Egypt, although it said that due to the low oil price outlook at February 29, the net present value found by the competent persons report was below the carrying value of the assets, and as a result an impairment of around USD4.8 million was recorded for the year.
SacOil's settlement agreement with Energy Equity Resources Norway Ltd, in relation to outstanding loans it is owed on its joint participation in an oil prospecting licence in Nigeria, resulted in an interest freeze on all outstanding loans, SacOil said. This "significantly reduced investment income" for SacOil, it said.
SacOil said its full-year results will be released later Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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