Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Premier Oil boasts of successful 2017 as it confirms production and cash flow boost

Premier today reported a 15% improvement in cash flows from operations, up to US$496mln, as it maintained a low cost base and enjoyed improved output volumes and crude prices
oil and gas operations
Production averaged 75,000 bopd in 2017

Premier Oil PLC (LON:PMO) chief executive Tony Durrant, in today’s financial results, boasted of the growing oil producer’s recent success.

Output for the twelve months, to December 31, amounted to 75,000 barrels oil equivalent per day and significantly during the final month of the year it delivered the Catcher oil field to first oil.

READ: Premier Oil lands new exploration acreage offshore Indonesia

The new North Sea oil field came online on schedule and under budget. A very large (600mln barrels) discovery offshore Mexico provided another of the year’s operational highlights.

Premier today reported a 15% improvement in cash flows from operations, up to US$496mln, as it maintained a low cost base and enjoyed improved output volumes and crude prices.

Free cash flow came in at US$71.2mln, and Premier achieved earnings (EBITDAX) of US$589.7mln up from US$494.1mln in the preceding year).

The oil firm made a net loss of US$589.7mln, after non-cash impairments and one-time fees related to its refinancing. Premier ended the year with its debt reduced, standing at US$2.7bn.

Looking ahead, the company is expected production between 80,000 and 85,000 boepd, with the Catcher field expected to yield some 60,000 boepd gross by April.

It anticipates further improvements to free cash flow, to drive debt reduction through 2018 and 2019.

Durrant said: “2017 was a successful year for Premier with the refinancing completed, our producing portfolio performing well, the Catcher field brought on-stream and the notable Zama oil discovery in Mexico. 2018 will see further production growth, allowing us to deliver on our plans for reducing net debt to restore balance sheet strength while also progressing projects that deliver the highest financial returns."

View full PMO profile View Profile

Premier Oil PLC Timeline

Related Articles

Paul Welch
August 30 2018
Production since the half year has risen to 4,400 barrels per day
oil and gas operations
July 03 2018
Analyst Ashley Kelty highlighted what could be characterised as favourable environment and opportunity for Rose Petroleum
oil and gas operations
April 19 2018
The first two potential new wells will be drilled in around 45 days, and investors will be keen to see the results

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