Africa Oil Announces 2020 Fourth Quarter Results
- Africa Oil fourth quarter net income of $79.8 million and full-year net income of $198.0 million, excluding a $215.6 million non-cash impairment of Kenya exploration assets posted in the first quarter 2020.
- Strong quarterly profit contribution by Prime to AOC’s net income amounting to $59.2 million.
- During 2020, Africa Oil repaid $109 million of its $250 million corporate term loan facility and has commenced the refinancing process for the balance with closing expected in July 2021.Year-end 2020 cash balance of $40.5 million and working capital of $29.3 million.
- Selected Prime’s fourth quarter 2020 results net to Africa Oil’s 50% shareholding*:
- quarterly average daily working interest production of 26,200 barrels of oil equivalent per day (“boepd) and economic entitlement production of 30,100 boepd (83% light and medium crude oil and 17% conventional natural gas)2,3;
- full-year W.I. production of 28,700 boepd and economic entitlement production of 33,900 boepd (85% light and medium crude oil and 15% conventional natural gas) are in line with Third Quarter 2020 Management Guidance2,3; and
- EBITDA of $128.8 million (full-year period: $619.5 million)4.
- 2021 Management Guidance :
- average daily W.I. production range of 24,000-28,000 boepd and net entitlement production range of 26,000-30,000 boepd net to AOC’s 50% shareholding in Prime, with approximately 85% expected to be light and medium crude oil and 15% conventional natural gas; and
- Prime’s cash flow from operations5 of $310-$440 million net to AOC’s 50% shareholding.
Africa Oil President and CEO Keith Hill commented: “I am pleased to report strong full-year results for the Company, despite one of the most challenging years for our industry. Our investment in Prime has performed exceptionally well with its strong production and free cash flows that enabled significant deleveraging, both at the Prime and Africa Oil corporate levels. Prime reduced its RBL debt by $522 million or 29% of the principal amount at the start of 2020. Africa Oil reduced its corporate term loan by $109 million or 44% of the original amount of $250 million that was drawn in January 2020. We are in a strong position to continue this strong performance and also plan to pursue new business development opportunities with a focus on the acquisition of producing assets, offshore West Africa.
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