Press Release
Tony Durrant, Chief Executive, commented:
“Premier continues to deliver excellent operational performance, which will drive free cash flow and the reduction of net debt. The first half saw good progress on the Catcher and Tolmount projects, a world class exploration success in Mexico and the acceleration of cash flow from disposals. Following the successful completion of our refinancing, we are ahead of plans to restore financial strength while progressing a number of exciting projects for future growth.”
- Operational highlights
- Record production of 82.1 kboepd, an increase of 34.5% on the prior period (1H 2016: 61.0 kboepd)
- Catcher FPSO sailaway to North Sea imminent; positive development drilling results
- Heads of Terms signed for new Infrastructure partnership for Tolmount project
- World class Zama oil discovery, offshore Mexico
- Disposal programme ongoing, including potential sale of interest in Wytch Farm field for US$200 million
- Financial highlights
- Cash flows from operations of US$292.0 million (1H 2016: US$108.7 million), up 168% on prior period
- Opex of US$14.7/boe, down 11% on the prior period
- Positive free cash flow in 1H, reducing net debt to US$2.7 billion
- Profit after tax of US$40.7 million (1H 2016: US$167.1 million including one-off non-cash credits)
- Comprehensive refinancing completed
- Outlook
- 2017 production guidance increased to 75-80 kboepd, from 75 kboepd
- 2017 opex guidance of <US$16/boe maintained, capex guidance recently lowered to US$325 million
- Catcher on schedule for 2017 first oil; improved field production profile now anticipated
- Further debt reduction forecast at year end at current oil prices including effects of ongoing planned disposals
- Debt reduction accelerating once Catcher on-stream; targeting leverage ratio of 3x EBITDA by end 2018