- M&P’s working interest production in first-half 2022: 25,126 boepd
o In Gabon, oil production of 13,828 bopd for M&P’s working interest; situation back to normal in June (15,120 bopd for M&P’s working interest) after disruptions in May following the incident at the Cap Lopez export terminal
o Steady gas production in Tanzania, with output of 44.4 mmcfd for M&P’s working interest
o Increase in oil production in Angola, with 3,902 bopd for M&P’s working interest, up 19% from second-half 2021
- Valued production of $352 million in first-half 2022, driven by strong crude oil prices
o Average sale price of oil of $105.0/bbl
o Valued production up 63% and 29% respectively versus first- and second-half 2021
o Consolidated sales of $355 million
- Net debt of $195 million at 30 June 2022, a reduction of $148 million from 31 December 2021 ($343 million)
o Following the refinancing announced on 12 May, new credit lines drawn down in early July
o First quarterly repayment due in April 2023, with c.$52 million being repaid annually for the next five years (excluding the RCF tranche)
o Dividend of €0.14 per share (for a total amount of $28 million) paid post closing on 5 July
M&P’s working interest production in the first half of 2022 was 25,126 boepd. The average sale price of oil during the period was $105.0/bbl, up 67% from the first half of 2021 ($63.0/bbl) and 32% from the second half of 2021 ($79.4/bbl).
The Group’s valued production (income from production activities, excluding lifting imbalances and inventory revaluation) in H1 2022 was $352 million. The restatement for lifting imbalances net of inventory revaluation had virtually no impact on the period due to near-exact offsetting between the first quarter (-$40 million) and the second quarter ($40 million). Only one lifting took place in Gabon in the first quarter, and two in the second quarter, one in Gabon and the other one in Angola.
Consolidated sales for the first half of 2022 came in at $355 million.
Production activities
- Gabon
M&P’s working interest oil production (80%) on the Ezanga permit stood at 13,828 bopd (gross production: 17,285 bopd) for the first half of 2022.
As mentioned previously, production in Q2 2022 was affected by the interruption to activity at the Cap Lopez terminal, which forced M&P to reduce production for two weeks. Consequently, average production in May was 10,701 bopd for M&P’s working interest (gross production: 13,377 bopd). The export situation returned to normal in June, with average production of 15,120 bopd for M&P’s working interest (gross production: 18,900 bopd).
- Tanzania
M&P’s working interest gas production (48.06%) on the Mnazi Bay permit was 44.4 mmcfd (gross production: 92.3 mmcfd) for the first half of 2022, up 15% from H1 2021 and 12% from H2 2021.
- Angola
M&P’s working interest production (20%) on Block 3/05 in Q1 2022 was 3,902 bopd (gross production: 19,507 bopd). Production had been affected by maintenance operations in 2021 but returned to a higher level once those operations were completed.
Production in Q1 2022 was revalued to 3,947 bopd for M&P’s working interest, rather than the 3,536 bopd initially announced when the quarterly results were published in April. This adjustment also resulted in a $5 million increase in Q1 2022 valued production.
Exploration activities
- Colombia
M&P received approval from the National Hydrocarbons Agency (ANH) to extend the COR-15 permit until July 2023. Drilling of the first exploration well is expected to start by October 2022.
Financial position
The cash position as at 30 June 2022 was $250 million. Gross debt stood at $445 million ($363 million for the term loan and $82 million for the shareholder loan), meaning net debt fell by $148 million during the period from $343 million at 31 December 2021 to $195 million at 30 June 2022.
In early July, M&P refinanced its debt in accordance with the terms announced on 12 May. It drew down the full amount of the $255 million new bank loan ($67 million being the RCF tranche) and repaid the $363 million outstanding on the former term loan, reducing gross debt by $108 million. In view of the favourable cash position, M&P decided to keep the shareholder loan at its current level of $82 million and not to draw down the second tranche of $100 million. That $100 million therefore remains available to M&P until the shareholder loan’s final maturity.
The refinancing completed in early July resulted in a cash outflow of $108 million. Upon closing of the transaction, the Group’s proforma cash position was $143 million (vs. $250 million as at 30 June 2022), before the dividend payment of €0.14 per share on 5 July, for a total amount of $28 million.
