Premier Oil : Half-Year Results for the six months to 30 June 2018

To view the full statement, please click the link below:

Half-Year Results for the six months to 30 June 2018 (1.30MB PDF)

Tony Durrant, Chief Executive, commented:
'Premier met its operational targets for the period. The Catcher Area is now at plateau production rates which, together with higher commodity prices, is driving free cash flow generation and net debt reduction. We have progressed our development projects while maintaining strict capital discipline. We can also look forward to a high-graded exploration and appraisal programme which has the potential to deliver very significant value for the business.'

Operational highlights

• Production of 76.2 kboepd (2017 1H: 82.1 kboepd) reflecting Catcher Area production ramp up offset by asset sales and natural decline
• Production averaged 86.2 kboepd in July (July 2017: 76.7 kboepd), despite ongoing summer maintenance
• Catcher Area now at plateau production; day rates of up to 70 kboepd (gross) achieved
• Tolmount project sanctioned post period end; key contracts awarded
• Exploration acreage significantly enhanced with new licence awards in Mexico and Indonesia
• Sale of Babbage Area announced; ETS (UK) and Kakap (Indonesia) disposals completed

Financial highlights

• Profit after tax more than doubled to US$98.4 million (2017 1H: US$40.7 million)
• EBITDA of US$388.9 million (2017 1H: US$325.9 million), up 19 per cent
• Cash flows from operations of US$276.6 million (2017 1H: US$282.7 million)
• Opex of US$17.2/boe, 5 per cent below budget
• Net debt reduced to US$2.65 billion (2017: US$2.72 billion)

2018 Outlook

• Production guidance unchanged at 80-85 kboepd
• Forecast opex of US$17-US$18/boe and capex of US$380 million unchanged
• Tolmount platform construction to start in December
• Zama appraisal programme to commence in Q4
• Completion of Pakistan and Babbage Area sales transactions
• Forecast full year net debt reduction of US$300 to US$400 million with covenant leverage ratio expected to fall to 2.5x by end Q1 2019, in line with previous guidance

Enquiries

Premier Oil plc	Tel: [phone]
Tony Durrant, Chief Executive
Richard Rose, Finance Director
Camarco	Tel: [phone]
Billy Clegg
Georgia Edmonds

A presentation to analysts will be held at 9.30am today at the offices of Premier Oil, 23 Lower Belgrave Street, London SW1W 0NR and will be webcast live on the Company's website at www.premier-oil.com. A copy of this announcement is available for download from Premier's website at www.premier-oil.com.