Maurel & Prom : Consolidated income at 30 June 2016

ID: 1455286
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(Thomson Reuters ONE) -

Paris, 31 August 2016
 No. 15-16

Consolidated income at 30 June 2016

* Increase in production offset by lower oil prices

* 43% increase in hydrocarbons production
* 27% drop in oil sales price
= Decrease in sales limited to 10%

* Decrease by 10% in opex resulting in a stable EBITDA

* EBITDA margin stable at 40%
* Sharp increase in operating income despite higher depreciation expenses
linked to the  production increase
* Net income of -?37m versus -?44m in H1 2015, due to an unfavourable
exchange rate and the share of loss of equity associates in SEPLAT

* Adjustment of banking covenants

* Agreement on new ratios adapted to current environment

* Agreement between Pertamina and Pacifico

* Sale of Pacifico-held M&P shares to Pertamina based on a price of ?4.20
+ ?0.50 earn-out depending on barrel prices in 2017
* Completion of the transaction and share transfer on 25 August 2016

Main financial aggregates at 30 June 2016:

In ?m H1 2016 H1 2015

Sales 142 158

EBITDA 57 63
Operating income -5 -33

Financial income -22 7
Tax 1 -17
Income of equity associates -12 -1

Consolidated net income -37 -44
Cash flow from activities -16 -21
Cash at period-end 230 102

Economic environment

The economic environment continues to be characterised by the low price of Brent
since summer 2014. The price dropped from US$113/bbl at the end of June 2014 to
US$58/bbl at the end of December 2014, US$38/bbl at the end of December 2015 and
US$50/bbl at the end of June 2016. In the first half of 2016, the average
selling price was US$39.2/bbl versus US$53.5/bbl in the first half of 2015, a
year-on-year drop of 27%.

Over the same period, the dollar depreciated against the euro. The euro-to-
dollar exchange rate at 30 June 2016 was 1.1102 versus 1.0887 at 31 December
2015. The average exchange rate for the period was 1.12, consistent with the
first half of 2015.

43% increase in the Group''s hydrocarbon production

In Gabon, the Group''s priority was to increase production by optimising water
injection to support pressure and improve oil sweeping in reservoirs.

Production from the Ezanga PSA fields, operated by Maurel & Prom, remained above
28,000 bopd in January and February 2016. In mid-March 2016, the pipeline
operator carried out further reinforcement work on the 12" routing line between
the Coucal station and the junction with the 18" pipeline. As a result,
production was limited between 13 March and 5 April 2016. It gradually picked up
to average 27,744 bopd in total production in the second quarter of 2016, or
22,195 bopd for M&P''s share, versus an average of 19,910 bopd (M&P share) in the
first quarter of 2016, a quarter-to-quarter rise of 11%.

Following the opening of the first two wells at the Mnazi Bay field in Tanzania
at the end of August 2015, the amount of gas delivered in the first half of
2016 averaged 49 million cubic feet per day (total production). Gas deliveries
depend on demand from the national company, TPDC.

Total production (Gabon and Tanzania) for M&P''s share was 25,144 boepd in the
first half of 2016 versus 17,581 boepd for the same period in 2015, an increase
of 43%.

Adjustment of banking covenants

Maurel & Prom and the banking consortium undertook the adjustment of debt ratios
linked to the $400-million Revolving Credit Facility (RCF) to adapt them to the
current environment.

New ratios were accepted by the banking consortium on 24 August 2016, extending
the loan''s initial maturity accordingly. Specifically, they involve:

* A revised ratio for Group net consolidated debt to EBITDAX of 6 at
30/06/2016, 5.5 at 31/12/2016, 5 at 30/06/2017, 4 at 31/12/2017, 3 from
* A security deposit of $75 million;
* The pledge of Seplat shares equivalent to $25 million.

Agreement between Pertamina and Pacifico

Pertamina and Pacifico announced on August 25(th) 2016 the purchase by Pertamina
of all the shares held by Pacifico in Maurel & Prom. This block trade follows
the agreement signed between Pertamina and Pacifico on July 31st 2016 whose
condition precedents have been cleared on August 25th.

The block trade has been completed for ?4.20 per share, plus a ?0.50 earn-out
per share payable if, from January 1st 2017 (included) to December 31st 2017
(included), the Brent price remains above USD 65 per barrel during all trading
days within a period of ninety consecutive calendar days.

Should Maurel & Prom''s Board of Directors deliver a favourable reasoned advice
on the offer following the conclusions of the report from the independent
expert, Pertamina undertook to file, to the French market authority, a voluntary
tender offer on (i) all Maurel & Prom shares under the same conditions as those
offered to Pacifico and on (ii) 2019 and 2021 convertible bonds at their par
value plus accrued interests. This offer is expected to be completed by the end
of 2016.

Maurel & Prom''s Board of Directors has unanimously indicated that it supports
the offer and has the intention to recommend the shareholders to tender their
shares. In accordance with applicable regulation, Maurel & Prom''s Board of
Directors will deliver its definitive reasoned opinion on the tender offer once
it has obtained the fairness opinion from the independent expert it has

Financial information

Sales for the first half of 2016 stood at ?142 million versus ?158 million for
the first half of 2015. This decline was due to the addition of following

* Drop in oil prices: selling price down by 27% to $39.2/bbl
* Increase in quantities produced in Gabon: +22% to 21,169 bopd for M&P share
* Increase in gas sales in Tanzania: average of 23.7 MMcf/d in H1 2016 for M&P

The Group''s margins have been quite steady thanks to cost reduction measures. At
the same time, the rise in quantities produced led to an increase in the
depletion expense. This caused the Group to post a current operating loss of ?2
million in the first half of 2016.

Financial income for first-half 2016 was -?22 million, which included a ?15
million borrowing cost and foreign exchange losses of ?5 million.

The Group''s share of the income of equity associates was -?11 million for Seplat
and +?0.5 million for Maurel & Prom Colombia BV. Seplat''s income was heavily
impacted by the shutdown of the export terminal, operated by a third party, in
mid-February 2016.

The Company has taken steps to reduce its costs and has revised its investment
programme downwards. In the first half of 2016, the Group''s total investments
amounted to ?19 million.

At 30 June 2016, Maurel & Prom had cash of ?230 million. The ?43 million
reduction in cash since the start of the year was largely due to changes in
working capital requirement (an increase in trade receivables of ?29 million and
a drop in outstanding payables of ?27 million). Pre-tax cash flow generated by
operating activities in the amount of ?39 million was used to finance ?19
million in investment and pay interest of ?14 million. The Group also received a
?4 million dividend from Seplat.

The Maurel & Prom Group''s business report and the consolidated financial
statements and related notes may be viewed on the Company''s website

To listen the audiocast of Maurel & Prom''s 2016 half results, click on the
following link at 10 a.m on Wednesday, 31 August 2016:

pieds cubes pc cf cubic feet

pieds cubes par jour pc/j cfpd cubic feet per day

milliers de pieds cubes kpc Mcf 1,000 cubic feet

millions de pieds cubes Mpc MMcf 1,000 Mcf = million cubic feet

milliards de pieds cubes Gpc Bcf billion cubic feet
baril b bbl barrel

barils d''huile par jour b/j bopd barrels of oil per day

milliers de barils kb Mbbl 1,000 barrels

millions de barils Mb MMbbl 1,000 Mbbl = million barrels
barils équivalent pétrole bep boe barrels of oil equivalent

barils équivalent pétrole par bep/j boepd barrels of oil equivalent per
jour day

milliers de barils équivalent kbep Mboe 1,000 barrels of oil equivalent

millions de barils équivalent Mbep MMboe 1,000 Mbbl = million barrels of
pétrole oil equivalent

For more information, visit:
Tel: +33 (0)1 53 83 16 00

Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45

This document may contain forward-looking statements regarding the financial
position, results of operations, activities and industrial strategy of Maurel &
Prom. By their very nature, such forward looking statements consider risks and
uncertainties based on events and circumstances that may or may not occur in the
future. These projections are based on assumptions that we believe to be
reasonable, but that may prove to be incorrect and that depend on a number of
risk factors, such as fluctuations in crude oil prices, changes in exchange
rates, uncertainties related to the valuation of our oil reserves, actual rates
of oil production and related costs, operational problems, political stability,
legislative or regulatory reforms, or even wars, terrorism and sabotage.

Maurel & Prom is listed for trading on Euronext Paris - Compartment A -
CAC® mid 60 - SBF120® - CAC® Mid & Small - CAC® All-Tradable - CAC® All-Share -
CAC PME - EnterNext(©) PEA-PME 150
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA


This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Maurel & Prom via GlobeNewswire

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Date: 08/31/2016 - 01:11
Language: English
News-ID 1455286
Character count: 3025
Firma: Maurel & Prom
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Stadt: Paris


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