Ophir Energy plc has released its full year results for the year ended 31 December 2015.
The company reported a pre-tax operating loss of US$376 million, after pre-tax impairments, due to the lower commodity price environment of US$169 million and commodity write-offs of US$149 million.
Revenue for the year stood at US$ 161 million UUS$211 million on a full year pro-forma basis).
Nick Cooper, CEO of Ophir Energy, said: “2015 saw Ophir respond swiftly to an exceptionally challenging operating environment. We radically reduced our cost base, and delivered synergies ahead of forecast on the Salamander acquisition. In the period we delivered material progress on the Fortuna FLNG Project: signing gas fiscal terms with the host government, securing Golar as midstream provider, commencing FEED, shortlisting binding offtake offers and signing a heads of agreement with Schlumberger to participate in the project. Through these steps, the forward funding requirements of the project will be met. In parallel through 2015, we also high-graded our exploration portfolio at minimal cost and with negligible commitments; exiting five plays and entering seven new plays, two of which are post period, that are better suited to the new price environment.
“Our strong balance sheet and net cash position, plus our low forward committed capex, provide Ophir with greater financial flexibility than we have ever enjoyed. We can now confidently look forward four years, to first gas and revenues from the Fortuna FLNG Project, knowing that we are fully funded.
“The upstream model of the past decade is clearly broken. Yet Ophir’s relatively strong financial position and quality asset base provide considerable optionality at this low point in the cycle. Exploration costs are approaching 30-year lows and quality opportunities for future growth are plentiful. Provided we continue to focus capital at assets that can deliver strong returns in the ‘new normal‘ of lower oil and gas prices then we are confident of driving superior NAV growth. In future, Ophir will more transparently report its assessment of movements in our NAV and will explicitly use this metric to align our organisational behaviour with shareholder interests.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/floating-lng/10032016/ophir-energy-reports-2015-results-2104/