Wentworth Announces Interim Results for the 6M Ended 30 June 2020

Source: www.gulfoilandgas.com 9/3/2020, Location: Africa

Wentworth Resources, the independent, Tanzania-focused natural gas production company, is pleased to announce its interim financial results for the six months ended 30 June 2020 . All dollar values are expressed in US dollars unless stated otherwise.

HIGHLIGHTS
2020 Outlook
- The health and safety of our employees is our priority and robust precautionary measures remain in place to ensure the continued safety of our staff; there have been zero reported cases of COVID-19 at Mnazi Bay
- Mnazi Bay remains fully operational, with no adverse impact on supply from the pandemic
- Marginal decline in industrial demand due to weakened activity as a result of COVID-19 with 2020 production guidance slightly adjusted to 60-70 MMscf/day (gross)
- Tanzania's economy has remained resilient with recent data from the African Development Bank suggesting Tanzania's projected GDP growth in 2020 is set to be the highest in the East Africa region at 5.2%
- Production volumes are expected to be typically higher in H2 2020 than H1 2020 due to the end of the rainy season and the lifting of COVID-19 restrictions in Tanzania
- Mnazi Bay is well-positioned to supply increased gas volumes and support demand growth in H2 2020 and into 2021 with the capacity to supply volumes of 100 MMscf/day (gross)

Financial
- Interim dividend of $1.2 million declared, an increase of 20% from H1 2019 ( $1.0 million ), bringing the total dividend distribution declared in the last 12 months to $4.2 million
- Revenues of $8.3 million , underpinned by long-term fixed price contracts with the Government of the United Republic of Tanzania
- Adjusted EBITDAX of $4.1 million (H1 2019: $3.3 million )
- Debt free with $16.7 million cash on hand at 2 September 2020
- Tanzania Petroleum Development Corporation ("TPDC") now fully current with payments
- Continued commitment from Tanzania Electric Supply Company ("TANESCO") to settle all remaining arrears with payments resuming in August
Operational
- Adjusted production guidance range of 60-70 MMscf/day (gross)
- 58.28 MMscf/day (H1 2019: 66.17 MMscf/day) for the period to 30 June 2020 following weakened demand due to COVID-19 related restrictions in March and April and an extended rainy season in January and June (normally March to late May)
- Industrial demand now recovering after the lifting of COVID-19 restrictions and natural gas-fired electricity generation displacing hydro-electric power due to the onset of the dry season. Proportion of supply to Tanzania's national grid provided by natural gas increased from 47% to currently 60%. Production averaged 68.48 MMscf/day for the period 1 July 2020 to 31 August 2020 and 71.77 MMscf/day for the period 1 August 2020 to 31 August 2020
- Low operational cost of production of $1.72 /Mscf (2019: $1.88 /Mscf)
- 2P Reserves of 95 Bscf, valued at $118.6 million (post-tax NPV10) as at 31 December 2019 as per published RPS Reserves Assessment Report

Sustainable Growth
- Wentworth remains focused on identifying sustainable and responsible growth opportunities that create value for Tanzania, Wentworth and all its stakeholders
- With an energy access rate of only 37% according to the IEA, population growth set to double by 2050 and an economy shifting from an agricultural to an industrial base, there is a real need for transformational growth in Tanzania's domestic energy supply to deliver universal access by 2030
- Wentworth's robust gas-to-power production platform is well-positioned to service this future demand growth and we are committed to growing our platform responsibly to support demand growth in Tanzania and protect returns for shareholders

Dividend
A dividend is declared of GBP 0.48 pence per share ( US$1.2 million ), payable by the end of October 2020 . A final dividend for the year ending 31 December 2020 will be determined by the Board with the full year results and is expected to be approximately $2.4 million in line with the Company's stated policy of 1/3 : 2/3 split between the interim and final dividend. Assuming a final dividend is declared, subject to shareholder approval, this would equate to a total distribution of $3.6 million which represents a full year dividend of 1.43 pence per share, a yield of approximately 8.2% at the current share price. Shareholders who hold their shares on the VPS Register on the Record Date shall receive the dividend in NOK. The exchange rate shall be determined on the UK Payment Date and the Company shall inform VPS Shareholders as soon as practicable thereafter of the NOK sum per share they will receive which shall be settled on the VPS Payment Date.

Interim Dividend Payment Timetable:
- Ex-dividend date: 10 September 2020
- Record Date: 11 September 2020
- UK Payment Date (for shareholders who hold shares on the UK Register ): 9 October 2020
- VPS Payment Date (for shareholders who hold shares on the VPS Register ): 23 October 2020


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