Last update: 30-Jul-2014 5:29 am
Wednesday, July 30, 2014
Trinidad & Tobago Guardian Online
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Trinity reports US$38.5m profit
Preliminary results for the year ended December 31, 2013 for Trinity Exploration and Production plc (Trinity plc) show a US$38.5 million profit, up from the US$15.2 million loss for the year ended December 31, 2012.
The US$15.2 million loss was Bayfield’s, before the San Fernando-based Trinity took over the latter in February 2013. The new entity, Trinity plc, has never posted a net loss. In its previous results as Trinity plc—the half-year results released in September 2013—the company reported a profit of US$53.5 million. In that half-year reporting period, Trinity also had an exceptional item of US$52.3 million to strengthen its comprehensive income statement.
The market had little or no reaction to Trinity’s results. Up to 2 pm London time yesterday, the share remained stable on the London Stock Exchange (LSE) at around £1.02, where it had closed the day before. The stock IPO’d as the new Trinity plc at £1.20 on February 14, 2013. Trinity told the LSE its 2013 revenues were US$123.8 million, up from 2012’s US$77.7 million when it was Bayfield.
“This increase was mainly attributable to increased onshore production and (ii) the revenues generated by the Galeota Asset, which was acquired in February 2013,” the company said. Production for 2013 was 1.4 million barrels of oil (mmbbls), up from 2012’s 0.8 mmbbls. Average production was 3,798 barrels of oil equivalent per day (boepd), with 55.0 per cent (2,088 barrels of oil per day (bopd)) sold onshore, 15.7 per cent (596 boepd) attributable to the west coast and 29.3 per cent (1,114 bopd) from the east coast.
Trinity sold its oil on average in 2013, for US$91.6 per barrel, lower than Bayfield’s 2012 average of US$92.5 per barrel.
Operating expenses were US$102.2 million in 2013, up from 2012’s US$61.4 million. Operating expenses in 2013 were made up of royalties of US$37.3 million, up from 2012’s US$29.2 million; production costs of US$33.1 million, up from 2012’s US$12.2 million; depreciation, depletion and amortisation of US$13.2 million, up from 2012’s US$7.7 million; general and administrative expenses of US$18.5 million, up from 2012’s US$12.3 million.
Operating profit before exceptional items amounted to US$21.6 million, up from 2012’s US$16.4 million. Exceptional items amounted to US$28.8 million, up from 2012’s US$17.4 million loss.
The exceptional items were negative goodwill of US$52.1 million, which is a gain on purchase and was recognised in respect of the reverse acquisition of Bayfield Energy Holdings plc by Trinity Exploration & Production (UK) Limited, as the fair value of net assets acquired was in excess of the fair value of consideration exchanged; and other exceptional items combined to a total expense of US$23.3 million.
In 2013, finance costs amounted to US$2.4 million, which is made up of the unwinding of the decommissioning liability of US$1.2 million, and interest on the fully drawn (US$20.0 million) Citibank loan of US$1.2 million. In taxes, Trinity paid US$9.4 million in 2013, down from 2012’s US$12.5 million.
Commenting on the results, Joel “Monty” Pemberton, chief executive officer of Trinity, said: “2013 was an exciting and transformational year for Trinity. Having successfully raised US$90 million in February, the focus has been on drilling activities to grow our production and reserves.
“In 2013 Trinity was the third most active driller in Trinidad and our TGAL discovery was the only successful exploration well in Trinidad during the year. This discovery reaffirms our confidence in the Galeota block and the key priority is to develop a cost efficient development plan within the shortest possible time frame.” In 2013, Trinity drilled nine new onshore wells, brought ten wells into production (including two drilled in 2012), and drilled nine onshore developments.
Pemberton added: “Our continued focus on improving drilling performance is beginning to yield positive results and we expect to see further benefits over time.”