Wentworth Announces Results for the 6M Ended 30 June 2021

Source: www.gulfoilandgas.com 9/2/2021, 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 2021. All dollar values are expressed in US dollars unless stated otherwise.


Health and Safety
The health and safety of our people, partners and local communities remains our priority; on 2 August 2021, the Company celebrated a five year zero Lost Time Incident Rate milestone
Robust precautionary measures remain in place related to COVID-19 to ensure the ongoing safety of our staff; to date, there has been no disruption to operations at Mnazi Bay due to COVID-19

Record Financial Results
Interim dividend of $1.32 million declared, an increase of 10% from H1 2020 ($1.2 million), bringing the total dividend distribution declared in the last 12 months to $5.12 million, in line with the Company's stated progressive capital return policy
Revenues grew 40% to $11.7 million (H1 2020: $8.3 million), due to record levels of production at Mnazi Bay
Adjusted earnings before interest, taxes, depreciation, amortization, and exploration (EBITDAX) rose 75% to $7.0 million (H1 2020: $4.0 million)
Strong financial position with $21.0 million cash in hand at 2 September 2021 (2 September 2020: $16.7 million) with zero debt
Tanzania Petroleum Development Corporation ("TPDC") continues to remain fully current with all invoices for gas sales
Payment plan to settle outstanding arrears from Tanzania Electric Supply Company ("TANESCO") established with over half the outstanding balance received in August

Strong Operational Performance
Reiterate increased production guidance range for the year of 70 - 80 MMscf/day (gross) compared to previous guidance of 65 - 75 MMscf/day
Production at Mnazi Bay averaged 80 MMscf/day (H1 2020: 58 MMscf/day), the highest H1 production performance achieved to date
Production capacity of existing wells and production facilities increased to 100 MMscf/day
Operational costs of production down 72% to $0.48/Mscf (H1 2020: $1.72/ Mscf), due to continued focus on cost efficiencies
Wentworth's share of Gross 2P Reserves as at 31 December 2020 estimated by RPS to be 90.8 Bcf with a post-tax NPV10 of $116.6 million

Corporate Updates
Appointed Juliet Kairuki, independent Non-Executive Director, as part of the ongoing process of Board refreshment
Bob McBean retired as Chairman of the Board but continues to support the Company as President of Wentworth Tanzania
Tim Bushell appointed Non-executive Chairman as part of planned Board succession
Board refresh to continue with the appointment of an additional independent Non-Executive Director later this year
Existing management team to be strengthened with a new senior hire identified and expected to be appointed shortly
Growth within Tanzania continues to be a key focus to capitalise on in-country track record, improving demand dynamics and operational performance

Sustainability Remains a Priority
Stakeholder engagement key to Wentworth's sustainability strategy; strong relationships with in-country partners including the Government of Tanzania and local communities evidenced by ongoing demand growth, operational performance and payment of receivables
Maintaining a robust ESG framework remains a priority following the launch of the inaugural Sustainability Report this year
A key focus for 2021 is Wentworth's climate strategy, to ensure effective measurement and mitigation of climate-related impacts; further updates will be shared in due course
Announced membership of the United Nations ("UN") Global Compact, underlining our commitment to operating responsibly in line with the UN's Ten Principles on human rights, labour, environment and anti-corruption and to take strategic action to support the UN's Sustainable Development Goals

Robust 2021 Outlook
Record H1 performance to date with average production volumes of 80.33 MMscf/day (gross) compared with H1 2020 average of 58.28 MMscf/day (gross)
All-time production volume highs at Mnazi Bay of 110.65 MMscf/day including monthly average production of 101.85 MMscf/day (gross) during March 2021, demonstrating the ability to supply greater than 100 MMscf/day (gross) during periods of high demand
Strong in-country natural gas demand in H1 2021 enabled an increase in annual average production guidance for 2021 to 70-80 MMscf/day (gross) from 65-75 MMscf/day (gross) - Wentworth remains on track to meet guidance
Ongoing delivery of the Company's progressive capital returns policy

Increasing Dividend Declared
A dividend is declared of GBP 0.52 pence per share (US$1.32 million), payable by the end of October 2021. A final dividend for the year ending 31 December 2021 will be determined by the Board with the full year results and is expected to be approximately $2.64 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 $3.96 million which represents a full year dividend of 1.55 pence per share, a yield of approximately 6.8% at the current share price.

Interim Dividend Payment Timetable:
Ex-dividend date: 9 September 2021
Record Date: 10 September 2021
UK Payment Date (for shareholders who hold shares on the UK Register): 8 October 2021
VPS Payment Date (for shareholders who hold shares on the VPS Register): 22 October 2021

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 via RNS as soon as practicable thereafter of the NOK sum per share they will receive which shall be settled on the VPS Payment Date.

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