2009 Half Year Report and Res

RNS Number : 0819Y

Roc Oil Company Limited

27 August 2009

 



27 August 2009 

ROC OIL COMPANY LIMITED ('ROC')

STOCK EXCHANGE RELEASE

2009 HALF YEAR REPORT AND RESULTS

ROC today released its Half Year Financial Report and Appendix 4D for the period ended 30 June 2009 ('1H09'). Copies of the report and Appendix 4D are available on ROC's website at http://www.rocoil.com.au/Public/Investor_Centre/Reports.aspx. The key highlights for 1H09 are:

FINANCIALS

• Sales revenue of US$102.1 million; down 43% from US$178.8 million in 1H08. 

• Average realised oil price of US$47.79/BBL (before hedging); an 8% discount to Brent.

• Net cash flow from operations of US$48.2 million; down 44% from US$86.1 million in 1H08.

• Trading profit of US$7.4 million; significantly down from US$101.1 million in 1H08.

• Net loss after tax of US$14.2 million (1H08: loss US$120.7 million) including unrealised derivative losses of US$34.4 million, a US$5.6 million loss on the sale of Nexus shares, a US$6.2 million profit on the sale of a 10% interest in the Basker-Manta-Gummy ('BMG') Fields and an income tax benefit of $15.6 million.

• Normalised net profit after tax of US$19.6 million (1H08: loss of US$13.3 million) after excluding significant items relating to unrealised derivative losses and asset sales. 

• Production costs incurred of US$31.0 million (1H08: US$17.0 million); US$14.86/BOE (1H08 US$9.18/BOE)

• Amortisation expense of US$56.0 million (1H08: US$50.6 million); US$26.84/BOE (1H08 US$27.31/BOE).

• Gross debt at 30 June 2009 was US$145.0 million (31 December 2008: US$168.7 million) and cash was US$45.1 million (31 December 2008: US$54.3 million), excluding combined funds from the equity capital raising and BMG sale of approximately US$107 million. 

OPERATIONS

• Production of 2.1 MMBOE from six production assets in Australia, Africa, China and UK; an increase of 13% compared to 1.9 MMBOE produced in 1H08. 

• Exploration expenditure of US$2.3 million (1H08: US$72.2 million) was incurred.

• Development expenditure of US$38.7 million (1H08: US$30.6 million) was incurred for the period, which included:

-    US$20.5 million at BMG; and

-    US$17.8 million at Zhao Dong.

• Progress was made on the Beibu Gulf Oil Project, offshore China with completion of the feasibility study.

Commenting on the 1H09 financial results, ROC's Chief Executive Officer, Bruce Clement, stated:

'ROC's financial and operating performance during the first half of 2009 has been sound, despite lower oil prices and a difficult economic environment. With production of 2.1 MMBOE, a normalised net profit after tax of US$19.6 million and cash flow from operations of US$48.2 million, the Company's producing assets have performed well.  

ROC has worked hard to steward financial resources and contain costs during the first half of the year. The Company remains on target to meet its exploration budget of US$10 million and its development budget of US$90 million to US$100 million.

In the first half of 2009, ROC has taken action to rebalance its asset portfolio by farming out a 45% participating interest in the Cabinda South Block, onshore Angola and through the sale of a 10% participating interest in the Basker-Manta-Gummy Project. The Company is planning to further reduce exposure to African exploration acreage.

While the first half of 2009 has been a period of financial and structural consolidation for ROC, the Company has also continued to focus on its strategy of exploiting existing reserves and resources and leveraging off its operating and technical strengths to sustain production and create future growth opportunities. Following the recent successful equity raising through an institutional placement and share purchase plan and the sale of a 10% interest in the Basker-Manta-Gummy Project, ROC has established a sound financial base to meet future development plans.'

Matthew Gerber

Manager 
Investor Relations & External Affairs

For further information please contact:

Mr Bruce Clement on

Tel: [phone]

Fax: [phone]

Email: [e-mail]

Or visit ROC's website: www.rocoil.com.au

Michael Shaw

Oriel Securities Limited (Nominated Adviser)

Tel: [phone]

Bobby Morse

Buchanan Communications

Tel: + 44 (0)20 7466 5000

Fax: + 44 (0)20 7466 5001

E-Mail: [e-mail]

Mob: [phone]

 

END

 

 

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