TIDMNOG
RNS Number : 6127Z
Nostrum Oil & Gas PLC
21 May 2019
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT
JURISDICTION
London, 21 May 2019
Financial Results for the First Quarter and Three Months ending
31 March 2019
Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or "the
Company"), an independent oil and gas company engaging in the
production, development and exploration of oil and gas in the
pre-Caspian Basin, today announces its financial results in respect
of the three-month period ending 31 March 2019.
Highlights:
Financial:
-- Revenue of US$95.4 million (Q1 2018: US$94.8 million)
-- Net operating cash flows(1) of US$42.2 million (Q1 2018: US$56.0 million)
-- EBITDA(2) of US$58.7 million (Q1 2018: US$57.2 million)
-- EBITDA margin of 61.5 % (Q1 2018: 60.3%)
-- Closing cash(3) for the period of US$75.7 million (FY 2018: US$121.8 million)
-- Total debt of US$1,109.7 million and net debt of US$1,034.1 million as at 31 March 2019
Operational:
-- Q1 2019 average production after treatment of 32,646 boepd
-- Q1 2019 average sales volumes of 31,621 boepd
-- 45 wells currently producing at the Chinarevskoye field - 18
oil wells and 27 gas-condensate wells
-- The third Gas Treatment Unit ("GTU3") was mechanically
completed in December 2018. Hot commissioning will commence during
Q2 with commissioning to be completed in Q3 2019
Kai-Uwe Kessel, Chief Executive Officer of Nostrum Oil &
Gas, commented:
"Q1 has been a solid quarter for production which has seen sales
volumes grow quarter-on-quarter. We now need to build on this and
focus on delivering the results we hope for in the Northern part of
the field. The Schlumberger technical study remains ongoing and is
expected to complete in Q3 2019.
I am pleased with the progress that has been made on
commissioning of GTU3 and we are on track to finish this in Q3.
On the Q1 financials, we have benefited from rising oil prices
during the quarter and recorded strong revenues on the back of
this. Our cash balance was lower than forecast due to a large
receivable balance which has now largely unwound. We remain focused
on growing production and are looking at how we can utilise all of
our processing facilities as quickly as possible."
Sales volumes
The sales volumes split for Q1 2019 was as follows:
Products Q1 2019 sales volumes Q1 2019 product
(boepd) mix (%)
Crude Oil & Stabilised Condensate 11,853 37.49%
--------------------- ---------------
LPG (Liquid Petroleum Gas) 4,109 13.00%
--------------------- ---------------
Dry Gas 15,658 49.52%
--------------------- ---------------
Total 31,621 100.00%
--------------------- ---------------
The difference between production and sales volumes is primarily
due to internal consumption of gas
Q1 2019 Drilling
-- As at 31 March 2019, the Company had 45 wells in production
(18 oil wells and 27 gas-condensate wells).
-- Well 42 (Northern Area) we have drilled through the reservoir
and will now start testing the well over the coming weeks.
-- Well 41 (Northern Area) is currently drilling through the target horizons.
2019 Drilling and sales volume guidance
-- We have completed drilling one well (Well 42) in the Northern
Area and released the rig to be deployed in another area of the
field whilst we test Well 42. We are close to completing the second
well. We remain on track to drill at least six wells during
2019.
-- The next well will be targeting Bashkirian crude oil
reserves, with a side track from an existing non-producing well. We
plan to drill one water injector for pressure maintenance in the
Tournasian oil reservoir and further well(s) in the Northern Area
pending the results of wells 41 and 42.
-- 2019 production guidance remains unchanged at 30,000 boepd,
corresponding to sales volumes of 28,000 boepd. Guidance does not
include any additional production from new wells planned this
year.
Progress on the development of GTU3
-- The third Gas Treatment Unit ("GTU3") was mechanically
completed in December 2018. Hot commissioning will commence during
Q2 with first gas in before the end of May and commissioning to be
completed in Q3 2019.
The below figures reflect all future cash payments expected to
be made (excluding VAT) on GTU3.
Remaining cash spend on US$23.4 million
GTU3 (excl VAT) as at 31
March 2019
Conference call
Nostrum's management team will present the Q1 2019 Financial
Results and will be available for a Q&A session with analysts
and investors today at 14.00 pm BST, 21 May 2019. If you would like
to participate in this call, please register by clicking on the
following link and following instructions: Results Call
Download: Q1 2019 Results Presentation
Download: Q1 2019 Financial Statements
Disclosure of inside information in accordance with Article 17
of Regulation (EU) 596/2014 (16 April 2014) relating to Nostrum Oil
& Gas PLC and Zhaikmunai LLP
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please visit www.nog.co.uk
Further enquiries
Nostrum Oil & Gas PLC - Investor Relations
Kirsty Hamilton-Smith
Amy Barlow
+44 203 740 7433
ir@nog.co.uk
Instinctif Partners - UK
David Simonson
Dinara Shikhametova
Sarah Hourahane
+ 44 (0) 207 457 2020
Promo Group Communications - Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37
Notifying person
Thomas Hartnett
Company Secretary
About Nostrum Oil & Gas
Nostrum Oil & Gas PLC is an independent oil and gas company
currently engaging in the production, development and exploration
of oil and gas in the pre-Caspian Basin. Its shares are listed on
the London Stock Exchange (ticker symbol: NOG). The principal
producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye
field, in which it holds a 100% interest and is the operator
through its wholly-owned subsidiary Zhaikmunai LLP. In addition,
Nostrum Oil & Gas holds a 100% interest in and is the operator
of the Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye oil
and gas fields through the same subsidiary. Located in the
pre-Caspian basin to the north-west of Uralsk, these exploration
and development fields are situated approximately 60 and 120
kilometres respectively from the Chinarevskoye field.
Forward-Looking Statements
Some of the statements in this document are forward-looking.
Forward-looking statements include statements regarding the intent,
belief and current expectations of the Partnership or its officers
with respect to various matters. When used in this document, the
words "expects," "believes," "anticipates," "plans," "may," "will,"
"should" and similar expressions, and the negatives thereof, are
intended to identify forward-looking statements. Such statements
are not promises or guarantees, and are subject to risks and
uncertainties that could cause actual outcomes to differ materially
from those suggested by any such statements.
No part of this announcement constitutes, or shall be taken to
constitute, an invitation or inducement to invest in the Company or
any other entity, and shareholders of the Company are cautioned not
to place undue reliance on the forward-looking statements. Save as
required by the Listing Rules and applicable law, the Company does
not undertake to update or change any forward-looking statements to
reflect events occurring after the date of this announcement.
Q1 2019: Nostrum Financial Results
In millions of US$ (unless Q1 2019 Q1 2018 Variance Variance
mentioned otherwise) in %
Revenue 95.4 94.8 0.6 0.7
-------- -------- --------- ---------
EBITDA 58.7 57.2 1.5 2.6
-------- -------- --------- ---------
EBITDA margin (%) 61.5 60.3 - -
-------- -------- --------- ---------
In millions of US$ (unless Q1 2019 FY 2018 Variance Variance
mentioned otherwise) in %
Cash Position 75.7 121.8 46.1 (37.8)
-------- -------- --------- ---------
Net Debt 1,034.1 1,007.8 26.2 (2.6)
-------- -------- --------- ---------
Revenue, EBITDA and Profit/Loss for the Period
Revenue from sales of crude oil, stabilised condensate, LPG and
dry gas over the period amounted to US$95.4 million, comparable
with Q1 2018 revenue of US$94.8 million. EBITDA was US$58.7 million
with an EBITDA margin of 61.5 %. Profit for the period was US$5.9
million.
Cost of sales
The cost of sales during the period was US$41.6 million,
remaining broadly in line with the Q1 2018 figure of US$41.4
million.
Cash resources and Net debt
The Group ended the period with US$75.7 million in cash and cash
equivalents (FY 2018: US$ 121.8 million). Net debt at the end of
the period was US$1,034.1 million (FY 2018: US$1,007.8
million).
Hedging
Nostrum's hedge came to its conclusion in December 2018. The
company continues to monitor the market in regard to hedging a
portion of its liquid production.
(1) IFRS term based on indirect cash flow method
(2) Defined as profit before tax net of finance costs, foreign
exchange loss/gain, ESOP, depreciation, interest income, other
income and expenses
(3) Defined as cash and cash equivalents including current and
non-current investments and excluding restricted cash
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END
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