Thursday preview: Premier Oil reports half year results

In a trading update in July, the company said it had achieved production of 61,000 barrels of oil equivalent per day (boepd) in the six months to 30 June, with recent record rates above 80,000 boepd. As a result, it sees full year production “at or above” the upper end of its guidance of 65,000- 70,000 boepd.

Production has been given a boost by first oil from the Solan oil project, which was being ramped up to 14,000 boepd in the second phase.

The company said integration of newly acquired E.ON UK North Sea assets had been completed with the portfolio performing strongly. Net debt was $2.6bn at the end of the period, flat compared to the end of the first quarter.

Operating expenditure (opex) for the period was $16 per barrels of oil equivalent, 14% below budget. A weaker sterling exchange rate is expected to reduce the cost of sterling-denominated opex, capital expenditure (capex) and debt.

The consensus forecast for half year revenues is $390m and operating cash flow is estimated to come in at $138m.

“Slightly strange since the July trading update provided the key data points: production of 61,000 boepd, unit opex of $16/boe and net debt of $2.6bn,” said Numis.

“Premier has repeatedly indicated it is likely to be above the top end of its production guidance range of 65,000-70,000 boepd for 2016 and with seasonal maintenance likely well under way by the time of the results Premier may be in a position to revise this range.”

Numis believes E.ON assets will have a much more material contribution in the second half, with group daily production rates of 80,000 boepd achieved in early July including E.ON.

Costs will also be a focus at the half year results, Numis said.

“Premier did not update its full-year opex guidance of $17/boe at the trading update so there is room for this guidance to come down further," the broker said.

“Opex savings are material for Premier, a 10% saving in unit opex from $17/boe for 2016 alone (not assuming any ongoing benefit) equates to 10% of Premier market cap.

“Group capex guidance was set at $730m, however, further savings look likely since over half of Premier remaining capex/opex for 16 is sterling denominated, and Premier guidance incorporated an FX rate of $1.4/£ in the second half.”

Thursday 18 August

INTERIMS
Empresaria Group, Evraz, Premier Oil, UK Commercial Property Trust

INTERIM EX-DIVIDEND DATE
4Imprint Group, British American Tobacco, Cineworld Group, Dairy Farm International Holdings Ltd. (Singapore), Fidessa Group, Hazel Renewable Energy VCT 1, Hazel Renewable Energy VCT 2, Henderson Opportunities Trust, Ibstock , Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdings Ltd. (Singapore), Legal & General Group, Mondi, Moneysupermarket.com Group, Pearson, Quartix Holdings , Reckitt Benckiser Group, Schroders, SEGRO, Telit Communications, Tritax Big Box Reit

QUARTERLY PAYMENT DATE
Fair Oaks Income Fund Limited

QUARTERLY EX-DIVIDEND DATE
Blackrock North American Income Trust , Brunner Inv Trust, MedicX Fund Ltd., Raven Russia Ltd. Cum Red Pref Shares, Real Estate Credit Investments PCC Ltd

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (EU) (10:00)
Continuing Claims (US) (13:30)
Current Account (EU) (09:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (13:30)

FINALS
Rank Group

AGMS
Blue Planet Investment Trust

TRADING ANNOUNCEMENTS
Kingfisher

UK ECONOMIC ANNOUNCEMENTS
Retail Sales (09:30)

FINAL DIVIDEND PAYMENT DATE
General Industries

FINAL EX-DIVIDEND DATE
Aberdeen Private Equity Fund Ltd. Sterling Part Shares, JPMorgan Brazil Inv Trust , Lazard World Trust Fund, Northgate, Panther Securities, Pets at Home Group , PHSC, red24, Severfield