MAUREL & PROM: First Half 2010 Revenue up 68% to EUR 131.3 Million
PARIS, August 3, 2010 /PRNewswire-FirstCall/ --
- Q2 2010 Entitlement of 10,969 b/d, Representing an Average of 9,814 b/d in the First Half of 2010
- The Current Gross Production in Gabon is Approximately 16,750 b/d, Representing Entitlement of Approximately 14,000 b/d
Revenue for the first half of 2010
The Group's revenue in the first half of 2010 totalled EUR131.3 million, up 68% from EUR78.3 million in the first half of 2009.
In EUR millions Q1 2010 Q2 2010* H1 2010 H1 2009** Change
Exchange rate 1.3829 1.2731 1.3285 1.3332 -0.4%
Congo 0.0 0.0 0.0 0.1 n/a
Tilapia 0.0 0.0 0.0 0.1
Gabon** 33.5 64.9 98.4 36.2 172%
Banio 1.1 1.7 2.8 2.5 11%
Onal 26.8 49.1 75.9 22.7 235%
Omko 5.6 5.6 11.2 11.0 2%
Omgw 0.0 7.2 7.2 0.0 n/a
Ombg 0.0 1.2 1.2 0.0 n/a
Tanzania 0.1 0.2 0.3 0.0 n/a
Mnazi Bay 0.1 0.2 0.3 0.0
Oil production 33.5 65.2 98.7 36.3 172%
Oil services 23.5 27.5 51.0 42.8 19%
Other -8.1 -10.2 -18.4 -0.9 n/a
TOTAL 48.9 82.4 131.3 78.3 68%
* Revenue for the second quarter is calculated by subtracting
first-quarter revenue from six-month revenue
** From 1 January 2010, turnover includes sales of barrels used to pay
corporate tax. The impact of this change of method is EUR 6.9m in H1
2010 against EUR 2.5m in H1 2009.
<end_table
The increase in revenue is a result of higher production level from the fields in Gabon and particularly the start-up of production from the Omgw and Ombg fields during the first half of 2010. On the Onal field, first oil in March 2009, the water injection program, which began at the beginning of December 2009, enabled the field's production to be sustained if not increased.
The Group recognised revenue of EUR0.3 million on the Mnazi Bay field in Tanzania, in which the Group acquired a 38.22% stake in 2009.
At the beginning of 2009 the Group implemented, at the closing of the financing of the Reserve Based Loan, hedging based on oil prices. The average hedge price in the first half of 2010 was $60.9/bbl whereas the average price of Brent was $77.3/bbl. This resulted in a negative adjustment of EUR 18.4 million.
Excluding the effect of hedging, the average selling price in Gabon in the first half of 2010 was $76.5/bbl for the production from Onal, Omko and Omgw, and $60.9/bbl for the production from Banio.
Caroil's contribution to revenue in the first half of 2010 (oil services) was EUR51.0 million, up from EUR42.8 million over the same period in 2009. Expressed in US dollars, the contribution of this activity totalled $67.8 million.
Caroil's corporate revenue in the first half of 2010 was EUR74 million. Expressed in US dollars, Caroil's corporate revenue amounted to $98.4 million, compared to $98.2m for the first half 2009.
Caroil generated 69% of its business with customers other than Maurel & Prom.
Business climate information 2010 2009 Change
6 months 6 months
Exchange rate (EUR/US$) 1.329 1.333 ns
Exchange rate (US$/EUR) 0.75 0.75 ns
Brent (US$/bbl) 77.3 51.5 +50%
Over the first six months of the year, the average Brent was up 50% compared with the same period in 2009.
Entitlement[1] of 10,245 b/d for Q2 2010, representing an average of 9,169 b/d for the first half of 2010.
Nine liftings were completed in the first six months of the year, highlighting the significant rise in production from the Gabonese fields.
In Congo, the production from the Tilapia field has not been consolidated since 30 April 2009 following the sale by Maurel & Prom of its rights to this license.
The following table, presented in barrels per day, shows the production data for the first half of 2010.
Country Gross production Maurel & Prom
from the fields working interest
production
in boepd Q1 Q2 H1 2010 Q1 Q2 H1 2010
Gabon 10,654 13,299 11,985 9,132 11,607 10,378
Banio 354 251 303 354 251 303
Onal 8,534 10,197 9,370 7,254 8,668 7,965
Omko 1,610 1,088 1,348 1,369 925 1,146
Omgw 156 1,518 841 156 1,518 841
Ombg - 245 123 - 245 123
Total 10,654 13,299 11,985 9,132 11,607 10,378
(table continued)
Country Entitlement Production
sold
in boepd Q1 Q2 H1 2010 Q1 Q2 H1 2010
Gabon 8,645 10,245 9,814 7,100 11,985 9,556
Banio 354 251 303 306 342 324
Onal 6,852 8,188 7,524 5,627 9,011 7,328
Omko 1,293 874 1,082 1,167 1,014 1,090
Omgw 146 1,424 788 - 1,392 700
Ombg - 232 117 - 226 114
Total 8,645 10,969 9,814 7,100 11,985 9,556
Oil and gas production in Venezuela, net of a 30% in-kind deduction on oil, was 1,038 barrels of oil equivalent per day for the first half of the year. Oil represented 52% of production. This activity is not included in Group revenue.
Current gross production in Gabon is approximately 16,750 b/d at 100%, which corresponds to entitlement for Maurel & Prom of approximately 14,000 b/d.
GLOSSARY
Gross production: production at 100%.
Working interest production: gross production - partners' share.
Royalties in Gabon: royalties are paid in cash in Gabon
Entitlement: working interest production - in-kind royalties - in-kind State share of profit oil + corporate tax if profit oil paid in kind.
Production sold: entitlement -/+ stock.
Selling price: in Gabon prices are set by the State according to oil quality and reference prices. The mutually-agreed costs to achieve commercial viability are then deducted from these prices.
Revenue: entitlement x selling price. Revenue is recognised at the date of lifting.
Taxes and fees: Profit oil due to the Gabonese State is paid in cash for the Banio field and in kind for the Onal, Omko, Omgw and Ombg fields. Corporate tax in Gabon is included in the State profit oil and recognised as revenue.
Q2 revenue: revenue for the second quarter is calculated by subtracting first-quarter revenue from six-month revenue.
For more information: http://www.maureletprom.fr
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 or sabotage.
Maurel & Prom is listed for trading on Euronext Paris - Compartment A - CAC mid 100 Index
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
Upcoming meetings:
30/08/2010 First half 2010 Results
[1] See Glossary, excluding Venezuela
Communication:
INFLUENCES
+33-(0)1-42-72-46-76
[email protected]
SOURCE Maurel & Prom
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