Record results for PA Resources as production increased Summary for the third quarter of 2006 - Profit for the period third quarter of 2006 amounted to SEK 102.4 million (32.2) which corresponds to an increase of 218 percent compared to the same period 2006. - Group revenue amounted to SEK 416.1 million (83.2) which corresponds to an increase of 400 percent compared to the same period prior year. Group revenue refers to sales of oil and gas. - Operating profit amounted to SEK 246.3 million (60.2) and the operating profit margin amounted to 59 percent (72). The increase in operating profit compared to the equivalent period in 2005 is due to a significant raise in production during last year and a high oil price level, which has affected Group revenue positively. The decrease in operating profit margin compared to the equivalent period in 2005 is due to considerably increased accumulated depreciations and personnel expenses. Costs amounted to SEK 45 million, referred to unrealized foreign exchange losses and share warrants earlier allocated as part of the Group`s share-based incentive program, have affected the result in the third quarter. Profit after financial items amounted to SEK 164.5 million (50.1). - EBITDA (earnings before interests, taxes and depreciations) amounted to SEK 300.0 million (64.1). - Earnings per share before dilution was 0.73 (0.25) and earnings per share after dilution was 0.73 (0.25). - Total production of oil and gas in the third quarter of 2006 amounted to 787,000 (222,000) barrels of oil equivalents (BOE), of which 787,000 (206,000) BOE oil and 0 (16,000) BOE gas. - The average production per day amounted to 8,555 BOE oil (2,417) during the quarter. - A total of 836,000 (192,000) barrels of oil equivalents were sold during the third quarter, of which 836,000 (178,000) to export and 0 (14,000) to the local market, to an average price of 66.63 USD/BOE (57.30).
Summary for the period January to September 2006 (9 months) - Profit for the period January - September 2006 amounted to SEK 191.5 million (59.0) which corresponds to an increase of 225 percent compared to the same period prior year. - Group revenue amounted to SEK 751.6 million (163.9) which corresponds to an increase of 359 percent compared to the same period last year. - Operating profit amounted to SEK 376.4 million (111.3) and the operating profit margin amounted to 50 percent (68). For an explanation of the causes behind the raised operating profit and the decreased operating profit margin, look above at the third bullet point under the subheading `Summary for the third quarter of 2006`. Profit after financial items amounted to SEK 310.7 million (96.1). - EBITDA (earnings before interests, taxes and depreciations) amounted to SEK 474.2 million (117.6). - Return on total capital employed amounted to 9.4 percent (4.8) and return on operational capital employed amounted to 9.5 percent (6.7). - Earnings per share before dilution was 1.40 (0.56) and earnings per share after dilution was 1.40 (0.56). - Cash flow for the period amounted to SEK - 108.4 million (1,150.1) and cash and cash equivalents amounted to SEK 708.1 million (1,164.4) at the end of the period. - The total production during January to September 2006 amounted to 1,526,000 (617,484) barrels of oil equivalents, of which 1,526,000 (548,000) barrels of oil and 0 (69,000) barrels of oil equivalents gas. - The average production per day amounted to 5,590 (2,481) barrels of oil equivalents during the period. - A total of 1,579,000 (427,000) barrels of oil equivalents were sold during the period, of which 1,402,000 (318,000) to export and 177,000 (109,000) to the local market, to an average price of 62.6 USD/barrel (51). No gas was sold during the period, compared to 71,000 barrels of oil equivalents gas during the same period prior year.
Comments from President and CEO Ulrik Jansson - The third quarter was characterized of a record production in PA Resources, which have given a significantly increased revenue and improved profit for the period.
- The most important events during the quarter were the drilling of a new production well at the Didon-field in Tunisia as well as the continued investments in western Africa. During the third quarter, we prepared for the acquisition of the company ADECO Congo BVI Ltd, which subsidiary owns a 85 percent interest share within the interesting block Marine XIV in the Republic of Congo (Brazzaville). PA Resources has also formed a new company together with two other companies. The purpose with the company is to find business opportunities and acquire oil- and gas assets in western Africa. |