Maurel & Prom Loss Steeper, Despite Improved Sales
Maurel & Prom reported higher sales and margins in the first half of this year. But the French firm, now owned by Indonesian state Pertamina, also reported September 13 a bigger loss: net income was negative €57mn ($68.2mn), compared with negative €37mn in 1H 2016.
Financial income was minus €54mn, which included net borrowing costs of €20mn, and foreign exchange losses of €33mn on revaluing M&P’s currency positions at end-June 2017. Sales though increased by 21% to €172mn and pre-tax earnings (Ebitda) were 37% higher at €78mn.
In southern Tanzania, it reported an 8% year on year increase in gas production, with M&P’s 48.06% net share of the Mnazi Bay field at 17.8mn ft3/d. Gas production capacity there is around 80mn ft3/d, yet average operated production was less than half that, at 37mn ft3/d at 100%. M&P said that production is dependent on industrial demand in the capital Dar Es Salaam. It said demand from state offtaker TPDC increased in July, with production in the last two months averaging 57mn ft3/d at 100%. Demand tends to be higher in the second half of the year.
M&P's junior partner at Mnazi Bay, Wentworth Resources, said last month that TPDC had improved its payments after being in arrears in 2Q 2017.
In Nigeria, Seplat (owned 21.37% by M&P) “could get back [during 1H 2017] to the hydrocarbon production levels achieved before force majeure was declared at the export terminal, and significantly increase the gas production.” Force majeure at the Forcados terminal has since been lifted and production has increased. In Gabon, M&P’s other main production centre, oil produced was 7% lower but the price realised increased by 29%.
Mark Smedley