President Energy (PPC)

Sector:

Energy Producers

Index:

FTSE AIM All-Share

 4.45p
   
  • Change Today:
      0.000p
  • 52 Week High: 10.05
  • 52 Week Low: 3.80
  • Currency: UK Pounds
  • Shares Issued: 1,126.56m
  • Volume: 588,316
  • Market Cap: 50.13m
  • Beta: 0.31

President Energy confident in second half as headwinds abate

By Josh White

Date: Tuesday 06 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Argentina-focussed upstream oil and gas company President Energy updated the market on its first-half trading on Tuesday, reporting a 7% year-on-year improvement in sales to $23.5m, notwithstanding lower average sales prices compared to the same period last year.
The AIM-traded firm said its adjusted EBITDA for the six month period stood at $8m, while its bank debt reduced to $4.82m as of Tuesday, from $10.15m at the start of the period.

Average net group production for the half-year was around 2,500 barrels of oil equivalent per day - up 8% on its full-year average for 2018, and notwithstanding the previously-announced operational outages and shut-ins in Argentina and Louisiana.

The board said that, with an "increasingly better" second half in prospect over the latter part of the first half, the company was "on track" for a projected group adjusted EBITDA for the full year of around $20m.

It said target average production guidance for the second half would be announced at the same time as the first half results, which it said should reflect the expected increase from the latter part of the first half as the benefit of the operational work being undertaken and planned started to impact, as well as the gradual bringing in of the ready-to-produce shut in production.

Interim results were expected to be announced towards the end of September.

On the operational front, President said its workover programme was still continuing, and added that a detailed review of the results so far would be given in September.

In addition to existing production, the firm said it had an estimated net 1,100 barrels of oil equivalent per day now tested, proven and ready to produce, subject to surface facilities being completed, save in the case of the Triche well in Louisiana which was subject to an ongoing workover.

The completion of those facilities would start to be effected "step-by-step" in the second half, with Louisiana production expected to start to be back on line by September.

Further, the company said additional hydrocarbon production was expected in due course from subsurface programmes, which in the normal course of planning were being re-evaluated and assessed in the light of knowledge gained from the workover programme and follow-on detailed subsurface analysis.

Concrete details of such were expected to be announced at the same time as the workover review in the first part of September.

"President has delivered positive results in the first half, notwithstanding the headwinds as previously announced which should now, step by step, be receding in the rear-view mirror," said President Energy chairman Peter Levine.

"In the space of only some 20 months President has enjoyed a period of transformative progress including the successful integration of four valuable acquisitions, a strategic pan-regional pipeline, the bringing on of new production, generation of positive cash flow and attaining good margins."

Despite that, Levine said the company's share price - uncoupled from such progress - had dropped some 35% in value during that time.

"President remains confident as to its future prospects and success as an energy business and is examining initiatives to deliver value for shareholders."

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PPC Market Data

Currency UK Pounds
Share Price 4.45p
Change Today 0.000p
% Change 0.00 %
52 Week High 10.05
52 Week Low 3.80
Volume 588,316
Shares Issued 1,126.56m
Market Cap 50.13m
Beta 0.31

PPC Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
30.17% above the market average30.17% above the market average30.17% above the market average30.17% above the market average30.17% above the market average
74.74% below the sector average74.74% below the sector average74.74% below the sector average74.74% below the sector average74.74% below the sector average
Price Trend
85.72% below the market average85.72% below the market average85.72% below the market average85.72% below the market average85.72% below the market average
66.99% below the sector average66.99% below the sector average66.99% below the sector average66.99% below the sector average66.99% below the sector average
Income Not Available
Growth
64.89% above the market average64.89% above the market average64.89% above the market average64.89% above the market average64.89% above the market average
81.25% above the sector average81.25% above the sector average81.25% above the sector average81.25% above the sector average81.25% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 2
buy
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PPC Dividends

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Trades for 15-Nov-2019

Time Volume / Share Price
16:36 100,000 @ 4.35p
15:31 20,000 @ 4.43p
14:20 50,000 @ 4.31p
14:17 3,709 @ 4.45p
11:36 14,000 @ 4.46p

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