Paris, 9 March
2018
No. 03-18
2017 Annual
Results
2017: a year of consolidation and
a return to profitability for the M&P
Group
-
Operating performance up
sharply
-
EBITDA up by 19% at €168m
-
EBIT showing a profit of €58m
-
Positive net income at €7m
-
Cash flow generated by operations up by 90% at
€164m
-
Strengthening of the Group's
financial structure and balance sheet
-
Refinancing of debt on favourable terms
following the closing of the takeover bid by the Pertamina
Group.
-
Net debt of €364m, down by 32% compared to
2016
-
Greater flexibility for future organic and
external development
-
Significant reduction in foreign exchange risk
exposure after the euro-denominated debt was refinanced in US
dollars
-
Return to development and
exploration projects
-
Resumption of a major development programme in
Gabon in the first half of 2018 after a three-year halt - 11 wells
planned for 2018
-
Planned drilling of two exploration wells in
Gabon in the second half of 2018
Key financial
aggregates
in €M |
2017 |
|
2016 |
|
Chg. |
Sales |
355 |
|
317 |
|
+12% |
EBITDA |
168 |
|
141 |
|
+19% |
as % of sales |
47% |
|
44% |
|
|
EBIT |
58 |
|
17 |
|
- |
Financial income |
-74 |
|
-30 |
|
|
Income from equity associates |
50 |
|
-28 |
|
|
Consolidated net income |
7 |
|
-50 |
|
|
|
|
|
|
|
|
Cash flow generated by operations |
+164 |
|
+86 |
|
- |
Investments |
33 |
|
44 |
|
|
Cash at period-end (including collateral deposit) |
216 |
|
263 |
|
-18% |
At its meeting of 8 March 2018,
chaired by Aussie B. Gautama, the Board of Directors of the Maurel
& Prom Group approved the financial statements for the year
ended 31 December 2017.
Commenting on these results,
Michel Hochard, Maurel & Prom's Chief Executive Officer,
said:
"2017 will always
be a key year for Maurel & Prom because it marked the Pertamina
Group's successful acquisition of an equity stake in our company.
It was a year of consolidation, paving the way for Maurel &
Prom's transformation as Pertamina's global development platform.
The recent conclusion of our financing on extremely favourable
terms opens up new development prospects for us and attests to the
multiple synergies we have been able to achieve with Pertamina.
We therefore look to the future with confidence.
Today we have the financial and strategic leverage to begin a new
chapter in Maurel & Prom's growth, the first illustration of
this being the resumption in 2018 of our development and
exploration drilling programmes."
Significant
events
In 2017 Maurel & Prom
consolidated the progress it has made over the last three years in
terms of workplace safety. The Group's performance during the
period was as follows:
The Group is continuing its
efforts to constantly improve its practices and procedures in order
to reduce as much as possible the risks related to its activities.
For example, particular care will be taken when drilling activities
resume in 2018.
Lost time injury
frequency (LTIF): per million hours worked
Total recordable injury rate (TRIR): per million
hours worked
The recovery of the price of crude
oil created a favourable economic environment for the oil industry
in 2017, which in turn had a positive impact on the Group's
financial statements at 31 December 2017. The average sale price of
oil in fiscal year 2017 stood at $ 53.0/bbl versus $42.7/bbl in
2016.
This price increase took sales to €355 million, up by 12%, despite an 8% drop in
oil production in Gabon during the period, due to the halt in
development drilling dating back to 2015. Maurel & Prom's share
of production stood at 23,903 bopd in 2017, versus 25,202 bopd in
2016.
Complementing oil production in
Gabon was gas production in Tanzania, which stood at 23.6 MMcf/d in
2017. Demand for gas has been increasing steadily since the second
half of 2017, with a year-on-year increase of 14% against
production in 2016.
EBITDA was up
by 19% at €168 million, while EBIT increased
significantly during the period to €58 million.
Non-recurring
expenses of €12 million (net) consisted mainly of asset
impairment (drilling rigs, M'Kuranga project in Tanzania) and costs
associated with Pertamina's takeover bid. Meanwhile, the Company
received compensation of CAD16.2 million from the Government
of Quebec following the withdrawal of the territory of Anticosti
Island from any hydrocarbon or underground reservoir
exploration.
Financial
income of negative €74 million comprised:
-
the cost of net debt amounting to €41 million,
including €21 million in non-recurring expenses associated with the
reclassification as income of a portion of the expenses related to
the issue of the loans repaid at the end of 2017;
-
a foreign exchange loss of €31 million related
to the unfavourable movement in the EUR/USD exchange rate during
the period. Note that the refinancing in US dollars will reduce the
group's exposure to foreign exchange risk going
forward.
Income of equity
associates was €50 million. The Group also benefited from an
improvement in SEPLAT's results following the recognition of
deferred taxes of €221 million, signalling favourable prospects.
SEPLAT's investments in equity associates amounted to
€125 million, while the market value of M&P's share stood
at €143 million at 31 December 2017.
After taking into account all of
the above factors, net income stood at a
positive €7 million.
The Group's cash
flow generated by operations for 2017 amounted to €164 million,
almost double what it was in 2016. This was the result of the
increase in EBITDA and improvement in the WCR, due in particular to
the pace of favourable entitlements in Gabon.
At 31 December 2017, the Group had
€216 million in cash.
Net debt stood at €364 million, down by almost
32% compared to 31 December 2016.
At end-2017, the Group had
successfully refinanced all of its debt on favourable terms, thanks
to the support of its new shareholder, the Pertamina Group, and
began rescheduling its repayments.
The refinancing transaction is
structured as follows:
-
Bank loan: a $600-million term loan signed with
a group of nine international banks;
-
Shareholder loan: a shareholder loan set up with
PIEP in an initial amount of $100 million, with a second tranche of
$100 million that can be drawn down at Maurel & Prom's
discretion;
-
Repayment of $762 million in existing
debt:
-
the Revolving Credit Facility (RCF) currently in
repayment and amounting to $325 million has been closed, also
resulting in the release of $75 million in cash previously held as
collateral;
-
repayment of the shareholder loan made available
by PIEP, under the terms laid out at the time of the takeover bid,
in the amount of €189 million ($224 million);
-
redemption of the ORNANE 2019 and 2021 bonds
held by PIEP totalling €180 million ($213 million), followed by
their cancellation.
This refinancing is a significant
step forward for Maurel & Prom:
-
optimised repayment profile, with a 2-year grace
period in 2018-2019, followed by steady annual repayments of $150
million for the Bank loan over the period 2020-2023;
-
low interest rate (Libor + 1.5% for the Bank
loan, Libor + 1.6% for the Shareholder loan) thanks to the
reiterated support from majority shareholder Pertamina,
-
alignment of the debt currency with the cash
flow currency; this, together with the change in the functional
currency of the Group's financing holdings, in particular
Etablissements Maurel & Prom, for US dollar, will significantly
reduce the Group's exposure to the EUR/USD exchange risk going
forward.
Following the refinancing, the
debt repayment profile is now as follows:
2018
Outlook
Maurel & Prom will be focusing
its efforts on the ramp-up of production in Gabon through the
deployment of its development programme, which had been halted for
almost three years due to falling oil prices. The drilling
programme is set to begin in the first half of 2018 and will
involve drilling 11 development wells and 3 side-tracks.
Drilling of the first exploration
wells on the Kari and Nyanga-Mayomnbé permits will start in the
second half of 2018.
The consolidated
financial statements as at 31 December 2017, approved by the Board
of Directors on 8 March 2018, are available on the Company's
website (www.maureletprom.fr). Audit
procedures have been conducted on the consolidated financial
statements. The certification report will be issued at the end of
April 2018, once the annual report has been finalised.
Next
publication:
23 April 2018: Sales for the first quarter of
2018, released before the markets open
French |
|
|
English |
pieds cubes |
pc |
cf |
cubic feet |
pieds cubes par jour |
pc/j |
cfpd |
cubic
feet per day |
milliers de pieds cubes |
kpc |
Mcf |
1,000
cubic feet |
millions de pieds cubes |
Mpc |
MMcf |
1,000 Mcf
= million cubic feet |
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 |
milliers de barils |
kb |
Mbbl |
1,000
barrels |
millions de barils |
Mb |
MMbbl |
1,000 Mbbl = 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 |
milliers de barils équivalent pétrole |
kbep |
Mboe |
1,000
barrels of oil equivalent |
millions de barils équivalent pétrole |
Mbep |
MMboe |
1,000
Mbbl = million barrels of oil equivalent |
For more information, visit
www.maureletprom.fr
Contacts
MAUREL &
PROM
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16
45
ir@maureletprom.fr
NewCap
Financial communications and investor
relations
Julie Coulot/Louis-Victor Delouvrier
Tel: +33 (0)1 44 71 98
53
maureletprom@newcap.eu
Media relations
Nicolas Merigeau
Tel: +33 (0)1 44 71 94 98
maureletprom@newcap.eu
This document may
contain forward-looking statements regarding the financial
position, results, business and industrial strategy of Maurel &
Prom. By nature, forward-looking statements 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
projections 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-Share - CAC Oil & Gas - Next 150 - PEA-PME and SRD
eligible
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
M&P_2017 annual
results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Maurel & Prom via Globenewswire
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