Interim results for the half year to 30 June 2019
The Group announces its Interim Results for the six months ended 30 June 2019. A conference call will take place at 0930 GMT today.
Ed Story, President and Chief Executive Officer, commented:
“We are pleased with the strategic progress SOCO has made in the first half of the year. We completed the acquisition of Merlon, and successfully integrated the business. The acquisition significantly increases group reserves, resources and production, and importantly gives SOCO the diversified base to grow production further. The Egyptian assets complement our Vietnamese portfolio and allow us to invest cash flow into activities focused on increasing reserves and production. We look forward to a busy second half of the year as we implement our increased drilling programme in Egypt and continue to focus on meeting production guidance in Vietnam. To further SOCO’s ongoing commitment to operating a sustainable business, a new ESG Board Committee, to be chaired by John Martin, has been established to ensure that SOCO is striving for the highest standards across all Environment, Social and Governance matters.”
2019 INTERIM RESULTS SUMMARY
- Total Group working interest production 12,541 boepd (1H 2018: 7,748 boepd)1
- Group revenue of $91.8m (1H 2018: $93.2m)1,2
- Cash operating costs under $10/bbl (1H 2018: $14/bbl)1
- Cash generated from operations $54.6m (1H 2018: $48.3m)1
- Group Net Debt $33.7m (1H 2018: Net Cash $128.8m)3
- 2018 full year dividend of $27.4m (1H 2018: $23.3m) paid 31 May 2019
- Initiatives for Greenhouse Gas (GHG) emissions reduction have been implemented in Egypt
1 Vietnam – full six months (181 days) | Egypt – from 02/04/2019 (91 days)
2 Stated after realised hedging loss of $0.9m
3 See Non-IFRS measures at page 27
- Egypt: production guidance for the El Fayum concession continues to be a 2019 exit rate of 6,500 bopd
- Vietnam: production guidance for 2019 remains unchanged at an average of 6,500-7,500 boepd for the full year
- Cash capital expenditure in 2019 is expected to be c. $50m
- Continued focus on growth through development of organic opportunities
SOCO will be hosting a Capital Markets Day on 29 October 2019. Please see full details below.
Ambassador António Monteiro, previously a Non-Executive Director and Chair of the Remuneration Committee retired from the Board of SOCO in May 2019, following ten years of service. SOCO would like to thank António for his contribution to SOCO, and to wish him all the very best for the future.
Marianne Daryabegui joined the Board of SOCO in March 2019 as an Independent Non-Executive Director. Marianne is a member of the Remuneration Committee, Nominations Committee and the Audit & Risk Committee.
As announced in our 2018 Annual Report and Accounts, the Board will seek to rebalance its composition during 2019 and has initiated an external search with process, with Korn Ferry, for a new independent Chair and a further Independent Non-Executive Director.
PROPOSED NAME CHANGE
SOCO is proposing to change its registered name to Pharos Energy plc. The proposed change of name, in order to take effect, requires SOCO shareholders to pass a special resolution at a general meeting of the Company. A circular to shareholders convening a general meeting for this purpose is expected to be posted by the end the month.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) COMMITTEE
To reflect SOCO ongoing commitment to operating a sustainable business, the Board has established a new committee, the ESG Committee, with direct delegated authority from the Board. The ESG Committee will take responsibility for overseeing and directing SOCO’s work towards the goal of establishing and maintaining the highest operating standards across Environment, Social and Governance matters. The committee will be chaired by John Martin, also the chair of the Audit & Risk Committee, and will initially comprise a combination of executive and non-executive personnel.
UPCOMING EVENT: CAPITAL MARKETS DAY – 29 October 2019, 14:00 – 18:00 (GMT)
SOCO International plc will hold a Capital Markets Event for sell-side analysts and institutional investors during the afternoon of Tuesday 29 October 2019 in central London. Presentations will be given by members of the management team to provide insights into the Group’s strategy and key areas of operations. The event will also be recorded and saved on our website.
SOCO International plc Tel: 020 7747 2000
Ed Story, President and Chief Executive Officer
Jann Brown, Managing Director and Chief Financial Officer
Mike Watts, Managing Director
Sharan Dhami, Group Head of Investor Relations
Camarco Tel: 020 3757 4980
Billy Clegg/Owen Roberts/Monique Perks
NOTES TO EDITORS
SOCO is an international oil and gas exploration and production company, headquartered in London and listed on the London Stock Exchange.
SOCO has production, development and exploration interests in Egypt and Vietnam.
In Egypt, SOCO holds a 100% working interest in the El Fayum oil concession in the Western Desert, one of Egypt’s most established and prolific hydrocarbon basins. The concession produces from 10 fields and is located 80 km south west of Cairo. It is operated by Petrosilah a 50/50 JV between SOCO and Egyptian General Petroleum Corporation (EGPC). In Vietnam SOCO holds a 30.5% working interest in the Te Giac Trang Field in Block 16-1, which is operated by the Hoang Long Joint Operating Company. Block 16-1 is located in the shallow water Cuu Long Basin, offshore southern Vietnam and a 25% working interest in the Ca Ngu Vang field in Block 9-2, which is operated by the Hoan Vu Joint Operating Company. Block 9-2 is located in the shallow water Cuu Long Basin, offshore southern Vietnam. SOCO also holds a 70% interest in and is designated operator of Blocks 125 & 126, located in the moderate to deep water Phu Khanh Basin, offshore central Vietnam.