Countries Eastern Africa Southern Africa Top News West Africa

Africa Oil Reports Q3 2022 Financial Results with Record Realised Oil Price

kamau
  • The Company received one dividend from its shareholding in Prime for $50.0 million(1) in Q3 2022 (first nine-month 2022 total of $212.5 million). Total amount of the dividends received so far in 2022 is $250.0 million, including $37.5 million received in October 2022.
  • Cash balance at September 30, 2022, of $207.3 million (at December 31, 2021 – $58.9 million), with no debt outstanding and an undrawn corporate facility of $100.0 million.
  • The Company launched a Normal Course Issuer Bid (share buyback) program on September 27, 2022. Since that date, until November 11, 2022, a total of 15,757,710 Africa Oil common shares were repurchased, at a bid cost of $35.7 million.
  • Paid the second semi-annual dividend of $0.025 per share to the Africa Oil shareholders for a total 2022 distribution of $23.8 million, which combined with the share buyback, represents a total shareholder capital return of $59.5 million year to date.
  • Selected Prime’s results net to Africa Oil’s 50% shareholding*:
    • achieved an average realized oil price of $101.5/bbl, the highest quarterly average since the acquisition of a shareholding in Prime, compared to the average Bloomberg Dated Brent price of $99.1/bbl for Q3 2022;
    • average daily W.I. production of 22,100 boepd and economic entitlement production of 25,200 boepd (84% light and medium crude oil and 16% conventional natural gas) in Q3 2022 (Q3 2021: 27,500 boepd and 30,100 boepd respectively) (3,4,5);
    • cash position of $309.6 million and debt balance of $474.7 million at September 30, 2022 (net debt of $165.1 million), which combined with the $207.3 million cash balance at the Africa Oil corporate level, results in a net cash position of $42.2 million;
    • in Q3 2022, EBITDAX(6) of $210.6 million (Q3 2021 – $192.1 million); and cash generated from operating activities of $62.1 million (Q3 2021: $122.2 million); and
    • robust Net Debt to EBITDAX6 ratio for the twelve months ended September 30, 2022, of 0.3x (twelve months ended December 31, 2021 – 0.4x).

Africa Oil President and CEO Keith Hill commented:

‘We have continued to deliver on our commitment to shareholder capital returns with the launch of our share buyback program in third quarter 2022. Together with our dividend policy, from start of the year through to November 11, 2022, we have returned almost $60 million to our shareholders whilst growing our cash position. This has been made possible by the robust performance of our Nigerian assets that provide us with high quality and long life production and cash flows. We can look forward to potentially high impact catalysts in the next few months, including the results of Gazania-1 exploration well, and the Venus appraisal program. Africa Oil has an attractive full-cycle opportunity set for sustainable shareholder value growth and a bright future.’

Leave a Reply