Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Max Petroleum narrowed losses for first half as production rose

Max Petroleum narrowed losses for first half as production rose

Max Petroleum (LON:MXP) has revealed narrowed losses for the six months to September 30 after production and sales increased by 17%.

The Kazakhstan-focused group produced 4,239 barrels of oil per day during its first half, up from 3,630 barrels in the corresponding period of 2013.

Oil sales totalled 751,000 barrels and the company had of US$54.1mln in revenue. Cash generation improved markedly, up 185% to US$27.5mln.

The group reported US$23.1mln of adjusted earnings, and at US$2.3mln its loss for the period reduced by more than 50% from last year's comparative of US$5mln. The loss included a US$6.8mln impairment relating to Kazakhstan VAT.

Max said it is still highly geared with US$82.8mln outstanding under a loan from Sberbank and warned that it may not be able to make repayments (starting with US$6.8mln due in March) should oil prices remain at current levels and if there was a delay to receipt of cash from its funding deal with AGR, a vehicle of the Assaubayev family.

AGR has agreed to invest £37.1mln (US$58mln) in return for a 51% stake in the business.

The final closing of the cash injection is subject to approval from Sberbank as well as regulatory sign-off in Kazakhstan.

Max said it is working closely with Sberbank over a potential loan restructuring, and it is seeking a moratorium on principle payments for 2015.

View full MXP profile View Profile

Max Petroleum Timeline

Related Articles

oil and gas operations
April 18 2018
Efforts in Nigeria will see gross production from the Opuama field reach 30,000 bopd by mid-2018, before Gbetiokun starts ramping up later this year.
picture of gas flare
February 13 2018
A new gas generator also came on stream recently and has started to produce the first power from the project
oil and gas operations
May 01 2018
It was a year of portfolio building and progress for the onshore UK-focused minor, punctuated by improved production volumes and a number of acquisitions with value-adding potential

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use