President Energy, the international energy company announces key highlights from the independently reviewed results from the first six months of the year to 30 June 2022 ("H1") in Argentina in accordance with Argentine reporting rules.
H1 Argentina Financial Results
Pursuant to the Mini-Bond issued last year and announced in November 2021 and extended earlier this year, President's Argentina subsidiary, President Petroleum S.A ("PPSA") as stated in the Company's announcement on 13 May 2022 , the Company is obliged to file auditor reviewed results in Argentina for each calendar quarter.
The results of PPSA for H1 have been reviewed by Crowe , the President Group auditors and are today filed with the relevant Argentine authorities. The results have been determined under Argentine GAAP rules. Such filing does not relate to President Group as a whole, only PPSA. The difference in accounting standards will produce anomalies in the various versions of the accounts.
The H1 Argentina Financial Report, converted from Argentine Peso's into United States Dollars shows inter alia:
· Turnover in excess of US$18 million . President is currently projecting turnover in Argentina for the full year in excess of US$40 million
· The results do not include any beneficial impact from the successful new wells in Salta. These are expected to positively impact results in H2 2022
· Profit before tax* for H1 of US$8.1 million
· During H1 the average oil reference price in Rio Negro for domestic sales was US$58.89 per barrel
· Currently the reference price for domestic sales in Argentina is US$65 per barrel
· During H1 President exported part of its production on three occasions and partial export of production has continued into Q3 2022.
The full half year accounts according to UK standards is expected to be announced before the end of September.
Peter Levine , Chair, commented:
"These results in Argentina achieved with the majority of oil sold at domestic prices demonstrate the health and robust nature of President's operations.
"With the impact of the increased production in Salta we are now engaged to optimized results in the second period of this year as well as the other activities of President and its evolving nature of the Group as previously announced including its 28% interest in Atome, its new Alternative Energy sub-group Green House Capital and the steps towards Lithium previously announced."