Trinity Exploration & Production PLC’s (LON:TRIN) financial results statement, for the twelve months ended December 31, hailed a “transformational period” in which the Trinidad focussed oil firm “re-established itself as a robust entity”.
The company highlighted that in the year the main focus was on maintaining production, rebasing costs and returning to profitability.
It recorded US$35.3mln of revenue in the year, down from US$48.2mln in the preceding twelve months.
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Losses narrowed significantly, however, helped by a 29% reduction in operating expenditure and a 61% cut in general and administrative costs.
Trinity reported a net loss (after tax and exceptional items) of US$7mln, down from a US$58.6mln loss the year before, meanwhile, it highlighted that it was profitable on an operating level for the majority of 2016.
The company noted that earnings (EBITDA – before exceptional items and exploration write offs) came in at US$6.3mln. It reported positive cash flow from operations of US$9mln, compared to US$2.5mln in 2015.
Trinity ended 2016 with some US$7.6mln of cash, before the successful completion of a fundraising in January 2017 which left the group with US$13mln and reduced debt significantly.
Oil production and growth plans
Group production averaged 2,542 barrels per day for 2016, declining from 2,896 bopd in 2015 because of a lack of capital investment. The group achieved an average realised price of US$39.4 per barrel, compared US$45.4.
Trinity added that production averaged 2,500 bopd in the first quarter of the current year, and it is working to guidance for 2,500 to 2,800 bopd for the full year – an eventual run rate of 3,000 bopd over the next twelve months through new drilling and field work.
It is planning a programme of 12 well recompletions, two are done and four more are planned to take place before the end of June.
A new infill drilling programme, comprising four new wells, is anticipated at some point over the next two years, subject to market conditions.
Positive chairman Bruce Dingwall
Trinity’s executive chairman Bruce Dingwall said: “The board and management endeavoured during the period to preserve as much value for shareholders and stakeholders as we could, delivering the refinancing and restructuring needed to restore the group's financial position.
“We are delighted to have now completed the balance sheet restructuring and we are now focused on growing our reserves and production levels, and achieving a market value that is more reflective of our underlying assets and business.
He added: “During the period production declined due to lack of investment. However, we are now focused on reversing this trend having made significant reductions to OPEX and G&A costs, enabling the company to maintain and enhance cash margins despite a lower oil price environment.
“As such, we are well placed to grow as a producing, cash flow positive business.
“With a low-cost asset base and strong management team in place we look forward to a busy year ahead.”