- Om Tethys Oil
|MSEK (unless specifically stated)||First quarter 2015||Fourth quarter 2014||First quarter 2014||% Q1 2015 to Q4 2014|
|Production, before government take (bbl)||784,207||768,226||608,582||2%|
|Average daily production, before government take (bbl)||8,714||8,350||6,762||4%|
|Net sales, after government take (bbl)||308,892||434,035||280,782||-29%|
|Average selling price per barrel, USD||63.80||97.09||106.56||-34%|
|Net sales of oil and gas||163||310||195||-47%|
|Result for the period||39||18||58||117%|
|Earnings per share before and after dilution, SEK||1.11||0.51||1.62||118%|
|Net debt/(net cash)||(371)||(347)||60||7%|
Dear Friends and Investors
The first quarter 2015 is, as expected following the fall in oil prices, considerable weaker than previous quarters. But we are happy to report that Tethys remains profitable. Our sales in the first quarter 2015 amounted to MSEK 163. Our EBITDA amounted to MSEK 76 and our net result amounted to MSEK 39.
During the quarter 2015, we continued to invest heavily in Blocks 3 and 4. Total investments of MSEK 130 were made in wells, seismic studies and infrastructure. Drilling activity increased markedly, and eleven wells were completed in the first quarter. And at least so far this year, production has responded very well to our investments. We reported a new quarterly production record of 8,714 barrels of oil per day for the first quarter and March showed the highest production we ever had in one month with our share of production from Blocks 3 and 4 amounting to 9,154 barrels of oil per day.
Our strong cash position, which at the end of the first quarter stood at MSEK 400, corresponding to more than SEK 11 per share, and our financial and operational numbers for the first quarter suggest that Tethys must be one of the financially strongest oil companies of our peer group. We have a solid balance sheet, also after the proposed distribution to shareholders of SEK 3 per share. Our large pile of cash and untapped credit line of up to MUSD 100, give ample room for continued investments as well as for other opportunities and/or further distributions to shareholders.
Looking forward, indications are that we may have seen the bottom of the oil price. Volatility has dropped dramatically the last couple of months. We are currently seeing Brent trading at well over USD 60 per barrel. A price level that we are quite comfortable with!
We expect drilling activity to remain at a high level also going forward. New rigs have been contracted and are expected to start work later this summer bringing us to a total of five rigs in operation. We believe that our oil production will continue to increase in 2015, but we expect the monthly production numbers to fluctuate.
Leaving the deserts of Oman and looking across the Baltic Sea to Lithuania, the production on the Gargzdai licence is currently cash flow positive, even if barely so. In the near term, we have higher hopes for the Raseiniai licence further to the east, where the exploration programme will enter the drilling phase later this quarter.
So stay with us - we are in a strong position and we intend to strengthen it further! And remember, an oil price of USD 60 per barrel is not a bad price. At least not for us!
Stockholm in May 2015
For further information, please contact:
Magnus Nordin, Managing director, phone: +46 8 505 947 00
Morgan Sadarangani, CFO, phone +46 8 505 947 01
This report has not been subject to review by the auditors of the company.
Tethys Oil is a Swedish energy company focused on exploration and production of oil and natural gas. Tethys Oil's core area is Oman, where the company is one of the largest onshore oil and gas concession holders. Tethys Oil also has exploration and production assets onshore Lithuania and France.
The shares are listed on Nasdaq Stockholm (TETY).