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Premier Oil Half-Year Results for the six months to 30 June 2019

Monday, 26 August 2019 | 00:00

Tony Durrant, Chief Executive, commented:
“I am pleased to report another strong performance for Premier where we have exceeded our financial and operational targets for the period. The Company’s strong cash flow is driving debt reduction and the Zama divestment and Sea Lion farm-down processes are targeting further strengthening of the balance sheet, which remains the Group’s highest priority. Premier’s operated Tolmount gas project, due on-stream next year, and the addition of good quality exploration and appraisal acreage offer significant low cost opportunities for future value growth.”

Operational highlights

Production of 84.1 kboepd (2018 1H: 76.2 kboepd), a record for 1H
Catcher Area high plateau rates of 70 kboepd (gross) maintained, operating efficiency of 99%
Tolmount project on schedule and under budget
Zama gross resource upgraded to 810 mmboe (P50) following successful appraisal
Attractive acreage captured: Andaman Sea position increased, entry into a high-impact appraisal project in Alaska
Climate Change Committee established; review of all operations to reduce emissions initiated

Financial highlights

Profit after tax of US$121 million (2018 1H: US$98 million)
EBITDAX of US$680 million (2018 1H: US$488 million, adjusted for impact of IFRS 16)
Opex of US$10/boe plus lease costs of US$6/boe
Cash margins 35% higher than 2018 1H
Free cash flow of US$182 million (2018 1H: US$90 million cash outflow)
Net debt reduced to US$2.15 billion (31 December 2018: US$2.33 billion)

2019 Outlook

Production (75-80 kboepd) and expenditure (US$12/boe opex, US$340 million capex) guidance unchanged
Over 40% of 2019 2H oil production hedged at US$69/bbl
First gas from Bison, Iguana and Gajah-Puteri (BIG-P) gas fields expected end Q4
Tolmount East appraisal well results due early Q4
Sea Lion Phase 1: discussions with senior lenders progressing, farm down process launched
Formal Zama sale process initiated
Forecast full year net debt reduction of over US$300 million reiterated (excluding any potential disposal proceeds)

Full Report

Source: Premier Oil plc

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