Financial results for the First Quarter ending 31 March 2014
CONSISTENTLY DELIVERING AGAINST TARGETS
Amsterdam, 28 May 2014
Nostrum Oil & Gas LP (LSE: NOG.LI) ("Nostrum"), the oil and gas exploration, development and production business today announces its results for the quarter ended 31st March 2014.
Highlights from the quarter
· Total average daily production of 48,350 boepd
· Revenue of US$227 million, down 1% compared to Q1 2013 (US$229 million)
· EBITDA of US$163 million, up 7% compared to Q1 2013 (US$153 million)
· Cash position of US$643 million and net debt of US$402 million
New Developments
· Proposed Premium Listing of Nostrum Oil & Gas
· Long-term off-take agreement for gas condensate with Trafigura
· Initial discovery at exploration well 40
Kai-Uwe Kessel, CEO of Nostrum Oil & Gas commented:
"Another strong financial quarter demonstrates the quality of the assets we have. Our consistent operational performance allows us to take advantage of the current oil price environment whilst our efforts to contain costs are also reaping rewards through a higher EBITDA margin. We will continue to focus on maintaining strong cash flows whilst executing the next phase of development. The company is in an excellent financial position and is well positioned to deliver on all its strategic initiatives."
Q1 2014: Nostrum's continued strengthening results
US$ million |
Q1 2014 |
Q4 2013 |
Change |
Q1 2013 |
Change |
Revenue |
227.0 |
237.8 |
(4.6)% |
228.5 |
(0.7)% |
EBITDA |
163.0 |
139.4 |
16.9% |
152.5 |
6.9% |
EBITDA Margin |
71.8% |
58.6% |
|
66.7% |
|
US$ million |
Q1 2014 |
FY 2013 |
Cash balance |
643.0 |
244.1 |
Net debt |
402.2 |
384.3 |
Revenue, EBITDA and Net Income
Revenue from sales of crude oil, stabilised condensate, LPG and dry gas stood at US$227 million. EBITDA stood at US$163 million. The EBITDA margin increased to 71.8% from 58.6% in the previous quarter, this was as a result of the devaluation of the Tenge and operational efficiencies from greater production and lower costs per barrel. Net income for the period was flat at US$58 million.
Cost of Sales
Cost of sales declined by US$30 million, or 37%, to US$50 million compared to US$80 million in Q4 2013. This was due to the devaluation of the Tenge and greater efficiencies in operating costs.
Cash
Nostrum ended the first quarter of 2014 with US$643 million in cash and cash equivalents, which includes US$4 million of restricted cash and US$30 million of short-term deposits. This represents a US$399 million increase, or 163% compared to the end of the 2013 financial year.
Proposed Premium Listing
The directors of Nostrum are pleased to announce its intention to seek admission to listing on the premium listing segment of the Official List and to trading on the London Stock Exchange's main market ("Admission") of a public limited liability company newly incorporated in England and Wales, namely Nostrum Oil & Gas plc (the "Company"), which it is proposed will be the new holding company for the business of the Partnership and its subsidiary undertakings (together, the "Group"). Upon Admission, the Group will continue to trade under the name Nostrum Oil & Gas. The Company will also apply for a listing of its ordinary shares on the Kazakhstan Stock Exchange (the "KASE").
Long-term off-take agreement with Trafigura
Nostrum has agreed a two-year contract to supply 720,000 tonnes of gas condensate via its wholly-owned operating subsidiary Zhaikmunai LLP to Trafigura Beheer B.V.
Successful exploration results
Well 40, drilled in the Chinarevskoe exploration permit area, tested a commercial inflow from a Lower Carboniferous sandstone. The discovery is based on a short-term well test. Testing will continue following the approval from the State of an extension to the exploration license. Further information will be provided after further testing is completed. Current results show oil in place of approximately 8mm bbl.
OPERATIONS
Production Split
PRODUCTS |
Q1 2014 Average Production |
Q1 2014 Product Mix % |
Crude Oil & Stabilised Condensate |
20,143 boepd |
42% |
LPG (Liquid Petroleum Gas) |
4,943 boepd |
10% |
Dry Gas |
23,264 boepd |
48% |
TOTAL |
48,350 boepd |
100% |
Nostrum's management team will be available for a Q&A session for analysts and investors on the day of the announcement (Wednesday, 28 May 2014), at 14:00 UK time (GMT+1). A presentation will be available online in advance of the call.
If you would like to participate in this call, please register by email using the following email address: [email protected]. Please provide your ID details (name, title, company, email address and telephone number) in order to receive dial-in details.
Download the financial statements: 1Q 2014 Financial statements
Further information
For further information please visit www.nog.co.uk
Further enquiries
Nostrum Oil & Gas LP - Investor Relations
Bruno G. Meere
Kirsty Hamilton-Smith
[email protected]
+ 31 20 737 2288
Instinctif Partners - UK
+ 44 (0) 207 457 2020
David Simonson
Tony Friend
Catherine Wickman
Anca Spiridon
Promo Group Communications - Kazakhstan
Asel Karaulova
+ 7 (727) 264 67 37
About Nostrum Oil & Gas
Nostrum Oil & Gas is an independent oil and gas enterprise currently engaging in the production, development and exploration of oil and gas in north-western Kazakhstan. Its Global Depositary Receipts (GDRs) are listed on the London Stock Exchange (Ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas LP 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. Located in the pre-Caspian basin to the north-west of Uralsk, these exploration and development fields are 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.
