Record results for PA Resources as production
increased
Summary for the third quarter of 2006
- Profit for the period third quarter of 2006
amounted to SEK 102.4 million (32.2) which
corresponds to an increase of 218 percent
compared to the same period 2006.
- Group revenue amounted to SEK 416.1 million
(83.2) which corresponds to an increase of 400
percent compared to the same period prior year.
Group revenue refers to sales of oil and gas.
- Operating profit amounted to SEK 246.3 million
(60.2) and the operating profit margin amounted
to 59 percent (72). The increase in operating
profit compared to the equivalent period in 2005
is due to a significant raise in production
during last year and a high oil price level,
which has affected Group revenue positively. The
decrease in operating profit margin compared to
the equivalent period in 2005 is due to
considerably increased accumulated depreciations
and personnel expenses. Costs amounted to SEK 45
million, referred to unrealized foreign exchange
losses and share warrants earlier allocated as
part of the Group`s share-based incentive
program, have affected the result in the third
quarter. Profit after financial items amounted
to SEK 164.5 million (50.1).
- EBITDA (earnings before interests, taxes and
depreciations) amounted to SEK 300.0 million
(64.1).
- Earnings per share before dilution was 0.73
(0.25) and earnings per share after dilution was
0.73 (0.25).
- Total production of oil and gas in the third
quarter of 2006 amounted to 787,000 (222,000)
barrels of oil equivalents
(BOE), of which 787,000 (206,000) BOE oil and 0
(16,000) BOE gas.
- The average production per day amounted to
8,555 BOE oil (2,417) during the quarter.
- A total of 836,000 (192,000) barrels of oil
equivalents were sold during the third quarter,
of which 836,000 (178,000) to export and 0
(14,000) to the local market, to an average
price of 66.63 USD/BOE (57.30).
Summary for the period January to September 2006
(9 months)
- Profit for the period January - September 2006
amounted to SEK 191.5 million (59.0) which
corresponds to an increase of 225 percent
compared to the same period prior year.
- Group revenue amounted to SEK 751.6 million
(163.9) which corresponds to an increase of 359
percent compared to the same period last year.
- Operating profit amounted to SEK 376.4 million
(111.3) and the operating profit margin amounted
to 50 percent (68).
For an explanation of the causes behind the
raised operating profit and the decreased
operating profit margin, look above at the third
bullet point under the subheading `Summary for
the third quarter of 2006`. Profit after
financial items amounted to SEK 310.7 million
(96.1).
- EBITDA (earnings before interests, taxes and
depreciations) amounted to SEK 474.2 million
(117.6).
- Return on total capital employed amounted to
9.4 percent (4.8) and return on operational
capital employed amounted to 9.5 percent (6.7).
- Earnings per share before dilution was 1.40
(0.56) and earnings per share after dilution was
1.40 (0.56).
- Cash flow for the period amounted to SEK -
108.4 million (1,150.1) and cash and cash
equivalents amounted to SEK 708.1 million
(1,164.4) at the end of the period.
- The total production during January to
September 2006 amounted to 1,526,000 (617,484)
barrels of oil equivalents, of which 1,526,000
(548,000) barrels of oil and 0 (69,000) barrels
of oil equivalents gas.
- The average production per day amounted to
5,590 (2,481) barrels of oil equivalents during
the period.
- A total of 1,579,000 (427,000) barrels of oil
equivalents were sold during the period, of
which 1,402,000 (318,000) to export and 177,000
(109,000) to the local market, to an average
price of 62.6 USD/barrel (51). No gas was sold
during the period, compared to 71,000 barrels of
oil equivalents gas during the same period prior
year.
Comments from President and CEO Ulrik Jansson
- The third quarter was characterized of a
record production in PA Resources, which have
given a significantly increased revenue and
improved profit for the period.
- The most important events during the quarter
were the drilling of a new production well at
the Didon-field in Tunisia as well as the
continued investments in western Africa. During
the third quarter, we prepared for the
acquisition of the company ADECO Congo BVI Ltd,
which subsidiary owns a 85 percent interest
share within the interesting block Marine XIV in
the Republic of Congo (Brazzaville). PA
Resources has also formed a new company together
with two other companies. The purpose with the
company is to find business opportunities and
acquire oil- and gas assets in western Africa.
