MEN Molecular Energies Plc

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RNS Number : 5947O

President Energy PLC

31 January 2019

31 January 2019

PRESIDENT ENERGY PLC

("President", "the Company" or "the Group")

2018 unaudited Group Management Reporting Highlights

A Transformational year with another year of significant progress in prospect

President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides highlights from the unaudited Group management report for the full year 2018, a comparison with the previous year and a review of current trading.

Financial Highlights

   --      160% increase in year on year turnover to US$47.2m (2017 - US$17.9m) 
   --      2018 Adjusted EBITDA* in excess of US$16m (2017 - loss of US$1.4m) 

-- Operational profit of $14.3m after administration expenses and workovers, but before depreciation (2017 - loss of US$4.3m)

-- 498% increase in group free cash generation from core operations before G&A to US$21.5m against 2017 (2017 - US$3.6m)

-- Group well operating costs per barrel decreased 16% to US$29.50 versus 2017 (2017 - US$35.05)

Trading and outlook

The Group is pleased to report that its internal unaudited management accounts for the year 2018 show a dramatic improvement from those the previous year. All key performance indicators demonstrated significant progress over the previous year. The key highlights of the results are shown above.

The results reinforce the fact that, as with the individual quarters figures last year, the Company has not been materially adversely affected by the recent macroeconomic turbulence in Argentina, which has stabilised with the Argentine own Stock Exchange up some 17% this year alone together with material recovery in bond prices and a much more stable forex rate.

The current year has begun well. Net Group production of 3,300 boepd is being sustained. January production from our core Rio Negro assets show an improvement of some 70% from the same month in 2018.

A minimum programme of six well workovers of currently shut in producing wells together with additional reactivations is due to commence at the end of March targeted to give another step up for production levels whilst smoothing any field natural declines. The year will also see President pivot towards more gas production as well as increasing its oil sales.

In the second half of the year a drilling programme of both oil and gas wells will commence, firm details of which will be announced in due course. President, by that time, will not only be selling gas through its own pan-regional pipeline network and powering it's own fields but will also be selling electricity to the national grid. Each one of these branches being a not insubstantial profit centre/cost saving in their own right.

Peter Levine, Chairman and Chief Executive commented:

"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.

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."

*Adjusted EBITDA is Earnings before interest, tax, depreciation, amortisation and impairment and adjusted to exclude non-recurring items

Contact:

 
 President Energy PLC 
  Peter Levine, Chairman, Chief Executive 
  Rob Shepherd, Group FD                       +44 (0) 207 016 7950 
 finnCap (Nominated Advisor & Joint 
  Broker) 
  Christopher Raggett, Scott Mathieson         +44 (0) 207 220 0573 
 Panmure Gordon (Joint Broker) 
  Charles Lesser                               +44 (0) 207 886 2500 
 Tavistock 
  Simon Hudson, Nick Elwes                     +44 (0) 207 920 3150 
 

Notes to Editors

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets. The Company currently has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 27 MMboe.

The Company has operated interests in the Puesto Flores, Estancia Vieja Las Bases and Puesto Prado Concessions, Rio Negro Province, in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. The Company is focused on growing production in the near term in Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

President is actively pursuing value accretive acquisitions of high quality production and development assets in Argentina capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support (including the IFC, part of the World Bank) and an in-country management team, President Energy gives UK investors rare access to the Argentinian growth story combined with world class standards of corporate governance, environmental and social responsibility.

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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