Third quarter and nine months report 2015
* Third quarter 2015 net sales amounted to MSEK 307 compared to MSEK 265
in the second quarter 2015, an increase with 16 per cent. The strong
net sales development during the third quarter compared to the second
quarter is a result of increase in production and higher oil prices.
In the two last quarters the total overlift position have also
* Net result after tax during third quarter 2015 amounted to MSEK 70,
and is up 32 per cent compared to MSEK 53 during second quarter 2015.
The strong net sales development and the improved oil price are the
main reasons for the increase in net result during the third quarter
* Third quarter 2015 earnings per share before and after dilution of SEK
2.00 compared to SEK 1.52 during second quarter 2015
* Third quarter average daily production increased 7 per cent compared
with second quarter 2015. Total production amounted to 928,047 barrels
corresponding to 10,087 barrels per day
* During the third quarter the company purchased 512,090 of its own
shares for an amount of MSEK 25. Net cash as per 30 September 2015
amounted to MSEK 485 compared to MSEK 323 as per 30 June
| MSEK (unless specifically stated) | Third quarter 2015 | Second quarter 2015
| % Q3 2015 to Q2 2015 | Third quarter 2014 |
| Production, before government take (bbl) | 928,047 | 858,453 | 8% | 772,722 |
| Average daily production, before government take (bbl) | 10,087 | 9,434 | 7%
| 8,399 |
| Net sales, after government take (bbl) | 584,399 | 545,019 | 7% | 399,352 |
| Average selling price per barrel, USD | 61.77 | 57.77 | 7% | 107.57 |
| Net sales of oil and gas | 307 | 265 | 16% | 296 |
| EBITDA | 153 | 153 | 0% | 173 |
| Operating result | 68 | 75 | -9% | 232 |
| Result for the period | 70 | 53 | 32% | 167 |
| Earnings per share before and after dilution, SEK | 2.00 | 1.52 | 32% | 4.71 |
| Net cash | 485 | 323 | 50% | 194 |
| Investments in oil and gas | 85 | 50 | 70% | 45 |
| MSEK (unless specifically stated) | Nine months 2015 | Nine months 2014 | %
9m 2015 to 9m 2014 |
| Production, before government take (bbl) | 2,570,706 | 2,039,427 | 26% |
| Average daily production, before government take (bbl) | 9,417 | 7,470 | 26% |
| Net sales, after government take (bbl) | 1,438,310 | 1,030,193 | 40% |
| Average selling price per barrel, USD | 60.69 | 106.72 | -43% |
| Net sales of oil and gas | 735 | 736 | 0% |
| EBITDA | 381 | 390 | -2% |
| Operating result | 163 | 553 | -71% |
| Result for the period | 170 | 332 | -49% |
| Earnings per share before and after dilution, SEK | 4.85 | 9.35 | -48% |
| Net cash | 485 | 194 | 150% |
| Investments in oil and gas | 245 | 158 | 55% |
Dear Friends and Investors
During the third quarter 2015, Tethys Oil passed yet another milestone.
Average daily production during the third quarter exceeded 10,000
barrels of oil for the first time. Total production in the first nine
months of 2015 is over 25% higher than in the first 9 month 2014 and
amounted to 2,570,706 barrels of oil.
As we have said, our project remains robust even in today’s oil price
environment. Tethys Oil continues to yield positive financial results.
In the third quarter, we report sales of MSEK 307. Net sales was up 16%
quarter on quarter. Our EBITDA for the quarter amounted to MSEK 153, in
line with the second quarter 2015. Our cash flow from operations
amounted to MSEK 268, and our net result increased 32% quarter on
quarter and amounted to MSEK 70. Our net cash stood at MSEK 485 as per
30 September 2015.
In the third quarter we sold more oil than we produced and our overlift
position at the end of the quarter amounted to almost 130,000 barrels.
We expect that a significant reduction of the overlift position, in
combination with the lower oil prices, will affect sales and result in
the fourth quarter 2015.
Operationally, the water injection programmes on our fields have been in
focus during the third quarter. On the Farha South field, three
additional water injection wells have been drilled and one more fault
block has been hooked up to water injection. Three water injection wells
were also drilled on the Shahd field, bringing the total injection wells
up to five in the field. We are awaiting the result of the programme on
the Shahd field with excitement. If successful, the water injection
programme will have a significant impact both on the reserves and on
production in the Shahd field.
We are also encouraged by the results from European operations onshore
Lithuania. The Tidikas-1 exploration well on the Raseiniai licence
encountered a combined oil column of almost 50 metres and flowed oil to
surface during drill stem tests. We are looking forward to the results
of the long term production tests of the well.
So stay with us – things continue to happen!
Stockholm in November 2015
For further information, please contact: Magnus Nordin, managing
director, phone: +46 8 505 947 02, e-mail: email@example.com
Morgan Sadarangani, CFO, phone: +46 8 505 947 01, e-mail:
Tethys Oil is a Swedish energy company focused on exploration and
production of oil. Tethys Oil’s core area is the Sultanate of Oman,
where the company is one of the largest onshore oil concession holders
with a current net production of around 10,000 barrels of oil per day.
Tethys Oil also has exploration and production assets onshore Lithuania
and France. The shares are listed on Nasdaq Stockholm (TETY).
(for full report, please see attached file)