Regulatory News:
Maurel & Prom (Paris:MAU):
- Production up and financial performance in line with changes
in the price of crude
- M&P’s working interest production of 27,406 boepd, up 9%
and 5% compared to the first and second six months of 2022
respectively (25,126 boepd and 26,053 boepd)
- Sales of $299 million in the first half of 2023, down 16%
compared to the first half of 2022 ($355 million), caused by the
marked fall (29%) in the average sale price of oil over the period
($74.8/bbl against $105.0/bbl)
- Continued cost discipline in spite of the inflationary
environment: limited increase in opex & G&A which reached
$88 million against $84 million in the first half of 2022
- EBITDA $164 million; net income $53 million; net current income
(excluding non-recurring items) $70 million
- Net debt down again in spite of an unfavourable change in
the working capital requirement.
- Cash flow from operating activities $87 million ($127 million
before change in the working capital requirement)
- Free cash flow of $38 million
- Net debt of $178 million as at 30 June 2023, down $21 million
over the half year ($200 million as at 31 December 2022)
- Pursuit of growth and return of value to shareholders
- M&P’s discussions with a view to the acquisition of Assala
Energy are well advanced and shareholders will be informed of
progress in due course
- Ongoing discussions with Tanzanian authorities to obtain
approval for the acquisition of Wentworth Resources
- Dividend of €0.23 per share (for a total amount of $49 million)
paid post half-year closing at the start of July 2023.
Key financial indicators
in $ million
H1 2023
H1 2022
Change
Income statement
Sales
299
355
-16%
Opex & G&A
-88
-84
Royalties and production taxes
-37
-45
Change in overlift/underlift position
-9
25
Other
–
–
EBITDA
164
250
-34%
Depreciation, amortisation and provisions
and impairment of production assets
-54
-40
Expenses on exploration assets
-12
-1
Other
-5
-4
Operating income
93
205
-54%
Net financial expenses
-7
-17
Income tax
-51
-68
Share of income/loss of associates
17
17
Net income
53
138
-62%
O/w net income before non-recurring
items
70
143
-51%
Cash flows
Cash flow before income tax
160
250
Income tax paid
-33
-54
Operating cash flow before change in
working capital
127
196
-35%
Change in working capital requirement
-40
3
Operating cash flow
87
199
-56%
Development capex
-57
-44
Exploration investments
-5
–
M&A
–
–
Dividends received
13
6
Free cash flow
38
161
-77%
Net debt service
-39
-105
Dividends paid
–
–
Other
0
-2
Change in cash position
-1
54
N/A
Cash and debt
30/06/2023
31/12/2022
Closing cash
137
138
Gross debt at closing
315
337
Net debt at closing
178
200
-11%
At its meeting of 3 August 2023, chaired by John Anis, the Board
of Directors of the Maurel & Prom Group (“M&P” or “the
Group”) approved the financial statements for the half year ended
30 June 2023.
Olivier de Langavant, Chief Executive Officer at Maurel &
Prom, stated: “As expected, the Group’s financial results for the
first half of 2023 are naturally less than those for the same
period last year, as the price environment has returned to a more
normal level after the significant volatility encountered in 2022.
However, this does not in any way obscure the excellent operational
and financial health of the Group. Production is increasing and
costs continue to be under control in spite of the high rate of
inflation affecting the sector. M&P is consolidating its
position on certain assets, with the extension of the Block 3/05
licence in Angola for example, while moving away from those which
do not fit with its capital allocation policy. This explains the
exit from the deepwater exploration licences in Namibia in
particular. In compliance with its ESG rules and commitments, the
Group continues to work actively to build its future and its growth
through major development projects, while ensuring the
redistribution of value created to shareholders, as shown by the
dividend of €0.23 per share paid at the beginning of July, up 64%
compared to the previous year.”
Financial performance
The Group’s consolidated sales for the first six months amounted
to $299 million, 16% lower than for the first six months of 2022
($355 million), in line with the fall in the average sale price of
oil ($74.8/bbl compared to $105/bbl; i.e. a drop of 29%.
Opex & G&A were $88 million over the period, a limited
increase of 5% compared to their level in the first half of 2022
($84 million). Royalties and production taxes were $37 million.
EBITDA was $164 million Depreciation and amortisation charges
stood at $54 million. Expenses on exploration assets of $12 million
correspond to drilling expenses incurred on the COR-15 permit in
Colombia ($5 million) as well as impairment of Namibian assets ($7
million) following return of the exploration licences to the
authorities. Current operating income amounted to $93 million.
Net of financial expense (structurally negative at $7million),
income tax ($51 million), and the share of income from equity
associates ($17 million, mainly referring to the 20.46% stake in
Seplat Energy), the Group’s net income fell to $53 million in the
first half of 2023. Current net income, excluding exploration
expenses in particular, amounted to $70 million.
Turning to cash flows, operating activities generated $127
million in the first half.2023, before the change in working
capital requirement. The change in working capital requirement had
a negative impact of $40 million over the period, caused in
particular by an increase in receivables from SOGARA, the Gabon
national refining company, amounting to $24 million as at 30 June
2023. A memorandum of understanding was signed with the Republic of
Gabon in July 2023, providing for recovery of the receivable via a
mechanism for charging to the recoverable costs of Ezanga with no
financial loss.
After taking into account $57 million development capex
(including $33 million of drilling development expenditure in
Gabon), $5 million exploration capex (relating to drilling
operations in Colombia) and $13 million received in dividends in
relation to the 20.46% holding in Seplat Energy, free cash flow
before financing stood at $38 million.
Net debt service was $39 million, including $23 million
repayment of principal. The change in cash position was therefore
-$1 million.
Available liquidity as at 30 June 2023 was $137 million
(compared to $138 million as at 31 December 2022) and covered only
the cash position, as the $67 million RCF tranche was fully drawn.
This excludes the sum placed in escrow as part of the offer
announced on 5 December 2022 for Wentworth Resources, which
amounted to $81 million as at 30 June 2023.
Gross debt amounted to $315 million at 31 March 2023, including
$236 million in a bank loan and $79 million in a shareholder loan.
The first quarterly maturities on both instruments since the 2022
refinancing were paid in April 2023, for a total amount of $23
million ($19 million for the bank loan and $4 million for the
shareholder loan).
Net debt therefore amounted to $178 million at 30 June 2023, a
decrease of $21 million compared to 31 December 2022 ($200
million).
Production activities
Q1
2023
Q2
2023
H1
2023
H1
2022
H2
2022
Change H1 2023 vs.
H1
2022
H2
2022
M&P working interest
production
Gabon (oil)
b/j
15,839
15,719
15,779
13,828
15,451
+14%
+2%
Angola (oil)
b/j
3,424
4,097
3,763
3,902
3,580
-4%
+5%
Tanzania (gas)
Mpc/j
46.7
47.6
47.2
44.4
42.1
+6%
+12%
Total
bep/j
27,054
27,755
27,406
25,126
26,053
+9%
+5%
Average sale price
Oil
$/bbl
75.2
74.0
74.8
105.0
90.5
-29%
-17%
Gas
$/mmBtu
3.76
3.77
3.77
3.50
3.51
+8%
+7%
M&P’s working interest oil production (80%) on the Ezanga
permit stood at 15,779 bopd for the first half of 2023, an increase
of 2% compared to the second half of 2022.
M&P’s working interest gas production (48.06%) on the Mnazi
Bay permit was 47.2 mmcfd for the first half of 2023, up 12% from
the second half of 2022.
M&P working interest production from Blocks 3/05A and 3/05
(20%) in the first half of 2023 was 3,763 bopd, an increase of 5%
on the second half of 2022.
Following publication of the decree of approval on 10 May, the
licence of Block 3/05 has now been extended from 2025 to 2040.
Discussions between the operator of the block and the regulator
with a view to finalising the improved tax terms associated with
the extension of the licence have successfully concluded and
implementation of the terms is now pending validation by the
authorities.
Exploration activities
M&P launched a farm-out process in November 2022 with a view
to finding a partner for exploration licences PEL-44 and PEL-45,
operated by M&P with an 85% working interest. The process ended
during the first half of 2023 without resulting in any offers from
companies invited to examine technical data on the two assets.
M&P therefore decided not to apply to enter the next
exploration phase, which includes drilling obligations, and the
licences for both PEL-44 and PEL-45 expired on 15 June 2023. This
marks the end of the Group’s operations in Namibia.
After exploratory drilling operations on the COR-15 permit ended
in February 2023, M&P analysed the data collected to determine
the prospectivity remaining on the permit. This exercise did not
enable identification of any new significant targets, in an asset
for which the Group is now free of any obligation for works.
Drilling activities
The C18 Maghèna drilling rig newly acquired by the Group and
operated by Caroil was commissioned in March 2023 and is currently
carrying out the drilling campaign on the Ezanga permit.
As part of its drilling services for third parties, in June 2023
Caroil signed an agreement with Perenco for a five-month drilling
campaign starting in Q4 2023, for which the C3 drilling rig is
currently being upgraded. The C16 drilling rig continues to be
deployed on the drilling campaign for Assala Energy in the south of
the country.
Information on the possible offer for
Assala Energy Holdings Ltd
Following our announcement on 14 June 2023 regarding a possible
offer for Assala Energy Holdings (“Assala”), M&P confirms that
it remains in advanced discussions with the shareholders of Assala
with respect to the proposed acquisition of all the shares of
Assala (the "Proposed Acquisition"). Assala is an onshore oil
company in Gabon, active in production (upstream), transport and
storage (midstream), with working interest production of
approximately 45,000 bopd in 2022.
There can be no assurance that agreement between the parties
will be reached on final terms and that the Proposed Acquisition
will complete.
M&P will update shareholders as to progress made in relation
to the Proposed Acquisition in due course.
Information on the current offer for
Wentworth Resources
On 23 February 2023, Wentworth Resources shareholders approved
M&P's offer by voting in favour of the Scheme at the Court
Meeting and in favour of its implementation at the General
Shareholders’ Meeting.
As part of the approvals process for this transaction as
detailed in Part III of the Scheme Document, M&P requires
approvals of Tanzania’s Fair Competition Commission (the “FCC”).
The FCC issued a decision notice that M&P’s application shall
not be determined at this time and will be marked closed by the
FCC. M&P is consulting with the relevant Tanzanian government
stakeholders in order to find a solution and bring the acquisition
to a successful conclusion. M&P is also consulting with
relevant Tanzanian government stakeholders about national oil and
gas company TPDC’s demand to exercise a right of first refusal to
the acquisition.
The completion of the acquisition of Wentworth Resources remains
subject to these approvals by the Tanzanian authorities, which is
expected in the second half of 2023. M&P will communicate on
this subject in due course.
Français
English
pieds cubes
pc
cf
cubic feet
millions de pieds cubes par
jour
Mpc/j
mmcfd
million cubic feet per day
milliards de pieds cubes
Gpc
bcf
billion cubic feet
baril
B
bbl
barrel
barils d’huile par jour
b/j
bopd
barrels of oil per day
millions de barils
Mb
mmbbls
million barrels
barils équivalent pétrole
bep
boe
barrels of oil equivalent
barils équivalent pétrole par
jour
bep/j
boepd
barrels of oil equivalent per day
millions de barils équivalent
pétrole
Mbep
mmboe
million barrels of oil equivalent
For more information, please visit www.maureletprom.fr/en/
This document may contain forecasts regarding
the financial position, results, business and industrial strategy
of Maurel & Prom. By nature, forecasts contain risks and
uncertainties to the extent that they are based on events or
circumstances that may or may not happen in the future. These
forecasts are based on assumptions we believe to be reasonable, but
which may prove to be incorrect and which depend on a number of
risk factors, such as fluctuations in crude oil prices, changes in
exchange rates, uncertainties related to the valuation of our oil
reserves, actual rates of oil production and the related costs,
operational problems, political stability, legislative or
regulatory reforms, or even wars, terrorism and sabotage.
Maurel & Prom is listed for trading on
Euronext Paris CAC All-Tradable – CAC Small – CAC Mid & Small –
Eligible PEA-PME and SRD Isin FR0000051070 / Bloomberg MAU.FP /
Reuters MAUP.PA
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230803296173/en/
Maurel & Prom Press, shareholder and investor
relations Tel: +33 (0)1 53 83 16 45 ir@maureletprom.fr
NewCap Financial communications and investor
relations/Media relations Louis-Victor Delouvrier/Nicolas Merigeau
Tel: +33 (0)1 44 71 98 53/+33 (0)1 44 71 94 98
maureletprom@newcap.eu
Montage Gold (TSXV:MAU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Montage Gold (TSXV:MAU)
Historical Stock Chart
From Apr 2023 to Apr 2024
