- Net income: €50 million
- Net cash at 31 December 2015: €251
million
- Proposed dividend: €0.30 per
share
Regulatory News:
MPI (Paris:MPI):
Jean-François Hénin, Chairman:
“The economic environment has impacted MPI in two different
ways: while the decline in oil prices has had a negative impact on
SEPLAT’s income and valuation, the change in exchange rates has
resulted in a revaluation of the Group’s assets, particularly its
cash.
These two items offset each other, enabling the Group to retain
both its value and its potential.
Based on the Company’s earnings, MPI will recommend payment of a
dividend of €0.30 per share at the next Shareholders' Meeting on 22
May 2015.
Given this volatile environment, its large cash holdings mean
that MPI retains all of its strategic mobility. “
In € million
2014 2013 Sales 0 0
Operating income -3.8 29.0
Financial income 1.1 4.0
Income before tax -2.6 32.9
Income taxes -12.1 -1.7
Net income from
consolidated companies -14.8 31.2
Net income from equity associates 35.0 165.1 Effect
of dilution 29.4 0
Consolidated net income
49.6 196.4 Cast at 31
December 2014 251 226
The MPI Group operates through (i) its equity interests in
Nigeria, mainly in SEPLAT Petroleum Development Company Plc
(“SEPLAT”) and (ii) the projects it has undertaken, primarily
in Canada and Myanmar, in partnership with the
Maurel & Prom Group through the joint investment
company: Saint-Aubin Energie.
The Company consolidates its subsidiaries, SEPLAT (21.76%) and
Saint-Aubin Energie (66.6%), using the equity method, with the
treatment authorised by the accounting standard IAS.
MPI posted an operating loss of €3.8 million in 2014, after
taking into account the operating costs inherent in the listing
(statutory audit, financial communication, legal costs, etc.).
The revaluation of the holding company's cash in USD contributed
to the recognition of a taxable income in France and a tax
liability of €12 million as a result.
The income of €35 million from the equity associates primarily
corresponds to MPI's share in SEPLAT for €46.1 million and
Saint-Aubin Energie for a total of -€8.8 million.
Since the Company did not participate in the SEPLAT capital
increase at the time of its IPO, its stake in SEPLAT was reduced
from 30.1% to 21.76%, which led to the recognition of a dilution
gain of €29.4 million.
At 31 December 2014, the Company held cash of €251 million, an
increase of +€25 million over the previous year as detailed
below.
- SEPLAT repayment of the shareholder
loan for €35 million;
- Dividends paid: -€27 m;
- Dividends received: +€9 m;
- Investments in SAE: -€17 million;
- Impact of changes in EUR/USD exchange:
+€30 million;
- Other: -€5 million.
- Dividend
The Board of Directors of the Company, which met on 30 March
2015, decided to recommend the payment of a dividend of €0.30 per
share at the next Shareholders' Meeting on 22 May 2015.
At 27 March 2015, the net asset value represents €4.96 per
share. The table below analyses the value of the Group's assets on
that date:
At 27/03/2015 after the market close holding % price
NAV in € million SEPLAT 21.76% 135 p
222.0 SAINT-AUBIN ENERGIE* 66.67% 59.0 Cash 277.3 Treasury shares
3.95% €3.07 14.0
Total asset value
572.3
NAV per share €4.96 Number of shares 115,336,534
* estimated value of MPI's equity interest in Saint-Aubin
Energie at 27 March 2015 unaudited (all past investments
included)
SEPLAT (MPI 21.76%)
The following information has been taken from SEPLAT's press
release of 26 March 2015.
Double market listing
Since 14 April 2014, SEPLAT’s shares have been listed for
trading simultaneously on the London Stock Exchange and the
Nigerian Stock Exchange in Lagos. As a result of this share
offering, the Company, which owned 30.1% of SEPLAT’s share capital
prior to the IPO, had its holding diluted to 21.76% of SEPLAT’s
share capital.
On 22 April 2014, SEPLAT used a portion of the IPO proceeds
to pay off the outstanding balance of US$48 million on the
shareholder loan made by the Company on 25 June 2010. The rest of
the proceeds from the issue will be mainly used to finance new
acquisitions.
Production
Hydrocarbon production over 2014 averaged 30,823 barrels of oil
equivalent per day, as the SEPLAT share. Crude production from the
OMLs 4, 38 and 41 fields reached a new record in December 2014 at
76,000 barrels of oil per day.
The construction and installation work on the new gas processing
plant (150 million cubic feet per day), located on the Oben field,
was completed in late 2014, which raises SEPLAT's gas processing
capacities in 2015 to 300 million cubic feet. SEPLAT plans to
continue raising its gas processing capacities up to 450 million
cubic feet of gas per day by 2017. The connection works at the
Warri refinery have been completed, with 288,811 barrels carried to
date, which allows SEPLAT to diversify the evacuation paths for the
hydrocarbons produced.
SEPLAT is planning to produce an average of between 32,000 and
36,000 barrels of oil equivalent per day, as SEPLAT’S share, over
2015.
In response to the current environment, SEPLAT is reducing its
share of investments for 2015 to production and development
activities to US$168 million.
Key data for SEPLAT for the 2014 financial year
In $m
2014 2013 chg.
Revenues 775 880 -12%
Gross profit
459 549 -16%
Operating profit
290 479 -39%
Income before tax
252 458 -45%
Net income
252 550 -54%
Operating cash flow
353 458 -23% SEPLAT share of production
(boepd) 30,823 30,600 +1% Sale price - oil (US$/bbl) 97.21 110.7
-12% Sale price - gas (US$ per mscf) 1.9 1.7 +12%
Although production has increased, the non-budgeted production
shutdown time (40 non-budgeted days out of 75 total shutdown days)
had a negative impact on revenue growth. Sales in 2014 were down
12% from 2013 at US$ 775 million, primarily because of falling oil
prices in the second half. Net profit for the year was US$ 252
million, taking into account non-recurring costs of US$ 70 million
related primarily to SEPLAT's IPO and fund raising. Cash flows from
operating activities, before the change in working capital
requirements, was US$ 353 million, greater than the US$ 296 million
in investments made over the year. Cash available and net debt at
the end of the year totalled US$ 285 million and US$304 million
respectively.
Reserves
SEPLAT's share of P1+P2 reserves was estimated at 281 MMboe (139
MMbls of oil and 827 Bcf of gas) at 31 December 2014, which
represents an increase of 24% over one year and a reserve
replacement rate of 400%.
Debt refinancing
Early in 2015, SEPLAT announced that it was refinancing its debt
by raising US$ 700 million over seven years and US$ 300 over three
years. If acquisition opportunities arise, this line may be
supplemented by another line in the same amount.
With these new lines of credit, SEPLAT was able to repay the
existing debt of US$ 552m, and the balance may also be used for any
growth project.
Acquisition of interests in OML 53
On 5 February 2015, SEPLAT announced the closing of its
acquisition of a 40% interest in OML 53 from Chevron Nigeria for
US$ 259 million. State-owned NNPC holds the remaining 60%.
SEPLAT values its share of recoverable volumes at 51 million
barrels of oil and condensates and 611 billion cubic feet of gas,
representing 151 million barrels of oil equivalent.
SEPLAT was named the operator of this onshore license in the
Niger Delta.
Current oil production is 2,000 bopd at 100%, which represents
around 800 bopd for SEPLAT's share.
Acquisition of an interest in OML 55
On 5 February 2015, SEPLAT announced the signature of an
agreement for the acquisition of 56.25% of the Belemaoil company, a
Nigerian vehicle dedicated to the purchase of a 40% interest in OML
55 from Chevron. State-owned NNPC holds the remaining 60%.
Thus, SEPLAT indirectly holds 22.5% in OML 55. The cost of this
transaction for SEPLAT, after the purchase price adjustment, is US$
132 million.
The company estimates its share of recoverable volumes at
approximately 20 million barrels of oil and condensates and 156
billion cubic feet of gas, representing 46 million barrels of oil
equivalent.
SEPLAT was named the operator of this onshore license in the
Niger Delta.
Total current oil production is approximately 8,000 bopd,
representing around 1800 bopd for SEPLAT's share.
SEPLAT dividend
The SEPLAT Board of Directors is recommending the payment of a
total dividend of US$ 0.15 per share, including US$ 0.06 per share
already paid at the end of 2014. The final decision is up to the
General Shareholders' Meeting to be held in Lagos in Nigeria on 2
June 2015.
SAINT-AUBIN ENERGIE (MPI, 66.67%)
Myanmar
In Myanmar, drilling on well SP-1X in block M2 (Saint-Aubin
Energie 40%), operated by Petrovietnam, began on 27 December 2014
and ended in March 2015. The results from this well are now being
analysed.
Canada
At Sawn Lake in Alberta, the pilot test of the Steam Assisted
Gravity Drainage (SAGD) process, conducted on two wells to evaluate
the technical and commercial feasibility of bitumen production
through steam injection, continues. Production began in September
2014 and will continue until the summer of 2015 in order to collect
the data necessary to assess the potential of the field.
On the island of Anticosti in Quebec, the stratigraphic drilling
campaign was a technical and operational success. The Macasty
target was reached at each of the five drilling locations, and the
results from analysis of the samples were in line with or better
than the partners' expectations. The drilling campaign, which
consists of up to eighteen stratigraphic wells, was suspended
during the winter. It is expected to resume in May 2015 and end
early autumn 2015. In addition, the joint venture, Hydrocarbures
Anticosti (Saint-Aubin Energie 21.7%) announced on 23 October 2014
the signature of a strategic partnership with Quebec-based company
Gaz Métro, to develop the associated natural gas from the island of
Anticosti.
Audit process is still underway. The
certification report is in the process of being issued. The
consolidated financial statements at 31 December 2014, approved by
the Board of Directors on 30 March 2015, are available on the
Company's website at www.mpienergy.com.
PRESS CONTACTS, INVESTOR AND SHAREHOLDER RELATIONS
For more information: www.mpienergy.comListing market:
NYSE-Euronext – Compartment B – Cac All Shares – CAC PMEISIN :
FR0011120914
MPI is eligible for the French “PEA PME” investment
scheme.
This document may contain forward-looking statements about MPI's
financial position, income, activities and industrial strategy. By
nature, forward-looking statements contain risks and uncertainties
to the extent that they are based on events or circumstances that
may or may not happen in the future. These projections are based on
assumptions we believe to be reasonable, but which may prove to be
incorrect and which depend on a number of risk factors, such as
fluctuations in crude oil prices, changes in exchange rates,
uncertainties related to the valuation of our oil reserves, actual
rates of oil production and related costs, operational problems,
political stability, legislative or regulatory reforms, or even
wars, terrorism and sabotage.
MPIir@mpienergy.comTel.: +33 1 53 83 55 44