Africa Oil reports strong June 30, 2021 results for the first half of 2021, with net income of $38.4 million in the second quarter of 2021.
Africa Oil reports $77.3 million for 1st half 2021
The company posted net income of $38.4 million at the end of the 2nd quarter (Q2) 2021, as well as a cash balance of $35.1 million.
During Q2, it received a dividend of $37.5 million from Prime Oil and Gas Cooperatief UA, a company in which Africa Oil holds a 50% stake.
At July 30, 2021, the company had an approximate cash balance of $42 million and net debt of $56 million.
On August 2, 2021, Africa Oil announced the closing of its debt facility with $160 million committed.
The company used $98 million of this new facility to repay in full its BTG term loan.
The undrawn balance of $62 million remains available until May 2022.
This amount can be used for general corporate purposes, subject to the usual covenants.
Africa Oil considers dividend payments
The company has reduced its debt.
In fact, the company’s cash position is showing signs of improving.
In addition, Africa Oil CEO Keith Hill praises Nigeria’s reformed Petrol Industry Bill.
According to him, it will make it easier to invest in new projects.
“Our project in Kenya continues to gain momentum and we look forward to drilling two exploration wells, Venus and Gazania, by the end of the year. […] Africa Oil is now looking to institute a shareholder return program by the end of the year, which could include a dividend policy and/or share buyback program, subject to necessary approvals,” says Keith Hill.
Prime Oil and Gas Cooperatief UA reports
Prime’s selected results for the second quarter of 2021 show a cash position of $292.8 million.
This includes $152.5 million, representing 50% of the security deposit received fromEquinor in respect of the Agbami field.
Prime reports average daily production of 28,100 barrels of oil equivalent and economic production of 30,500 (84% light and medium crude oil, 16% conventional natural gas).
EBITDA amounts to $155.1 million, or a total of $298.2 million for the first half of 2021.
Cash flow from operating activities amounted to $252.3 million, or $338.2 million in total for the 1st half of 2021.
In July 2021, Prime signed an agreement for the sale and purchase of OML 130 gas.
This will result in an additional $36 million in sales revenue, with a net cash payment of $21 million expected in Q3 2021.
The field’s operating performance remains strong, thanks in particular to the removal of production limitations on Egina due to OPEC constraints.
