·Second quarter 2015 net sales amounted to MSEK 265 compared to MSEK 163
in the first quarter 2015, an increase with 63 per cent. The strong net
sales development during the second quarter is mainly a result of a
movement of about 100,000 barrels from underlift to overlift position
·Net result after tax during second quarter 2015 amounted to MSEK 53,
and is up 37 per cent compared to MSEK 39 during first quarter 2015.
Second quarter net result negatively affected by exploration costs of
MSEK 8
·Second quarter 2015 earnings per share before and after dilution of SEK
1.52 compared to SEK 1.11 during first quarter 2015
·Second quarter average daily production increased 8 per cent compared
with first quarter 2015. Total production amounted to 858,453 barrels
corresponding to 9,434 barrels per day
·Dividend and share redemption of SEK 3.00 per share amounting to MSEK
106 was distributed to shareholders during the second quarter. Cash and
bank as per 30 June 2015 amounted to MSEK 323
| MSEK (unless specifically stated) | Second quarter 2015 | First quarter 2015
| % Q2 2015 to Q1 2015 | Second quarter 2014 |
| Production, before government take (bbl) | 858,453 | 784,207 | 9% | 658,123 |
| Average daily production, before government take (bbl) | 9,434 | 8,713 | 8% |
7,232 |
| Net sales, after government take (bbl) | 545,019 | 308,892 | 76% | 350,059 |
| Average selling price per barrel, USD | 57.77 | 63.80 | -9% | 105.89 |
| Net sales of oil and gas | 265 | 163 | 63% | 245 |
| EBITDA | 153 | 76 | 101% | 192 |
| Operating result | 75 | 13 | 477% | 134 |
| Result for the period | 53 | 39 | 37% | 107 |
| Earnings per share before and after dilution, SEK | 1.52 | 1.11 | 37% | 3.02 |
| Cash and bank | 323 | 400 | -19% | 33 |
| Investments in oil and gas | 50 | 131 | -62% | 69 |
| MSEK (unless specifically stated) | First half 2015 | First half 2014 | % H1
2015 to H1 2014 |
| Production, before government take (bbl) | 1,642,659 | 1,266,705 | 30% |
| Average daily production, before government take (bbl) | 9,075 | 6,998 | 30% |
| Net sales, after government take (bbl) | 853,911 | 630,841 | 35% |
| Average selling price per barrel, USD | 59.95 | 106.19 | -44% |
| Net sales of oil and gas | 428 | 440 | -3% |
| EBITDA | 229 | 322 | -29% |
| Operating result | 88 | 216 | -59% |
| Result for the period | 93 | 165 | -44% |
| Earnings per share before and after dilution, SEK | 2.63 | 4.64 | -44% |
| Cash and bank | 323 | 33 | 879% |
| Investments in oil and gas | 181 | 114 | 59% |
Dear Friends and Investors
These are trying times for oil investors. The lower oil prices hit
everyone, Sheikhs as well as shale fracking Americans, not to mention
ourselves – the shareholders of Tethys Oil. Oil prices have always been
cyclical, and eventually the prices will need to stabilize and to
improve. But while we have seen the value of oil companies fall in line
with the fall in oil price, let us remember that Tethys’ operational
performance continues to improve and the financial results are solid:
Oil production continues to increase. Production in the second quarter
was the highest in the company’s history and increased with 8 per cent
quarter on quarter and 30 per cent year on year to 9,434 barrels of oil
per day.
Tethys Oil continues to make good money. 57 dollar per barrel, the
average price we achieved during the second quarter 2015, resulted in
strong sales of MSEK 265, a healthy EBITDA of MSEK 153 and earnings per
share of SEK 1.52 for the quarter.
Tethys Oil has a strong balance sheet. With a pile of cash and untapped
lines of credit, Tethys Oil continues to have one of the strongest
balance sheets of our peer group. Even after the distribution to
shareholders in the second quarter of MSEK 106 or SEK 3.00 per share,
and after investments, Tethys Oil has a cash balance of more than MSEK
300 as at 30 June 2015.
Tethys Oil continues to grow organically. Our investments in Blocks 3
and 4 have over the years resulted in growing production and increasing
reserves. After only having seriously explored a portion of the vast
area, we have three producing oilfields and several producing rock
layers. As ever larger areas are covered by 3D seismic, we are getting
an even better picture of the potential of Blocks 3 and 4. The scope for
growth in Blocks 3 and 4 remains quite high indeed.
Tethys Oil is in a strong predatory position. The drop in oil prices is
much more painful for many of our peers – something we intend to
capitalize on. During most of the first six months of 2015, we saw oil
prices recover from their January lows. It most likely had a negative
effect on potential seller’s willingness to sell. The sharp drop we have
seen since June and the return to the lows of January, should remove
some of this reluctance to complete a deal. We are actively pursuing
acquisition opportunities and remain cautiously optimistic about our
prospects. And remember – in this regard yet lower oil prices, for a
while, are a help.
Tethys Oil pays dividends. As a unique feature for oil companies on the
Stockholm stock exchange, Tethys Oil in the second quarter made a cash
distribution to shareholders. And we intend to continue to pay out, even
at today’s oil prices! Our intentions regarding future distribution to
shareholders are clarified in the long term new capital structure target
presented in a separate press release issued at the date of this report.
So stay with us – We believe we are one of the most exciting oil related
investments around. We offer exposure to the oil price and – while we
wait for it to improve – we offer growth, acquisition opportunities and
a yield.
Stockholm in August 2015
Magnus
Nordin
Managing director
For further information, please contact: Magnus Nordin, managing
director, phone: +46 8 505 947 02, e-mail: magnus@tethysoil.com
or
Morgan Sadarangani, CFO, phone: +46 8 505 947 01, e-mail:
morgan@tethysoil.com
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 in excess of 9,000 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).
Website: www.tethysoil.com
