Tethys Oil has published its annual report for 2012 and communicates strategic
and financial goals and a new dividend policy. The report is available on the
corporate website, www.tethysoil.com.
Vision and strategy
Tethys Oil shall have a well balanced and self financed portfolio of oil and
natural gas assets. The company also aims to conduct business in an economical,
socially and environmentally responsible way, to the benefit of all
stakeholders.
The company’s strategy is:
• Organic growth in existing assets by taking a proactive role and by
building strategic partnerships to convert acreage to reserves and reserves
to production
• Seek new growth platforms, primarily onshore appraisal projects with
material impact and low entry cost
In the company’s existing assets, a proactive role with strategic partners is
key to maximizing the potential of the projects. Growth will primarily come
from appraisal projects where oil has previously been discovered, but was
deemed sub-commercial for various reasons.
Dividend policy
Tethys Oil aims to offer high return on capital through investments and growth
in oil and gas projects and no dividends is therefore expected to be paid
during the coming years. Future dividend policy will be determined by the
company’s financial position and assessment of future growth potential.
Financial targets
Most of the investments that are required for commercial oil production in
larger scale in the producing areas of Blocks 3 & 4 in Oman have been
completed. This, in combination with a positive cash flow from the business,
means that there is no continuous need for any additional capital to the
current operations. A strong cash position is important to pursue the growth
strategy.
Long term capital structure targets:
• Debt/equity ratio of 30-40%
• Net debt /EBITDA of up to 2x
• Strong cash position to have the ability to grow
The capital structure targets are long term targets and Tethys will allow that
these targets are not met for a short time period or for specific
circumstances.
For further information, please contact
Magnus Nordin, Managing Director, phone +46 70 576 6555; magnus@tethysoil.com
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Tethys Oil AB (publ)
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 France, Lithuania and Sweden. The
shares are listed on First North (TETY) in Stockholm. Remium AB is Certified
Adviser.
Website: www.tethysoil.com