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Premier Oil: Full year results 2004
Premier Oil reported post tax profits of US$43.8m (2003:US$66.5m), the lower results this year being attributed to the disposal of some of the company’s interests in Indonesia and Myanmar in September 2003. On a like for like basis, net profits increased by 57% (2003:US$27.9m) from ongoing operations’.
The like for like profit improvement is due to higher oil prices and lower interest charges following the restructuring. (Net interest expenses were US$2.8m, down from US$20m last year. Production for the year was broadly flat at 34,700 barrels of oil equivalent per day (boepd) (2003:ongoing operations 35,100 boepd).
The company has changed its reporting currency to US$ which should improve reported performance by eliminating foreign exchange translation losses.
The outlook on oil prices in the medium term is still good. The company is undertaking an exploration programme of up to 16 wells in 8 countries, and will “continue our search for attractive new commercial opportunities”; some astute commercial deal making in the past has been rewarded by good performance in the share price. This indeed is the main attraction in the stock and hence the relatively high prospective PE (on 2005 earnings) of 17.7× at the current price of 542.5p.
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