Trinity Exploration & Production plc, the independent E&P company focused on Trinidad and
Tobago, announces its final results for the year ended 31 December 2022 (the Period or FY 2022).
During 2022 Trinity put in place the foundations for an ambitious growth programme, developing a series of
catalysts to drive shareholder value that we are now starting to execute in 2023. These include:
drilling the Jacobin well targeting the deeper Miocene-age turbidite play in our onshore blocks;
the application for the highly prospective Buenos Ayres block in the 2022 Onshore Bid Round, the outcome
of which is expected shortly; and
revised planning to further exploit the Galeota offshore block, focused on greater capital efficiency and
shorter development and payback times.
Underlining the resilience of the base business, the Company is committing to a new Capital Allocation Policy
which will include a modest but sustainable dividend commencing in Q3 2023 with an intent for that to form
part of a broader distribution of operating cash flow to shareholders, depending on realised oil prices.
Highlights
Group net sales for 2022 were 2,975 bopd (2021: 3,006 bopd)
Revenues of USD 92.2 million (2021: USD 66.3 million)
Profit before tax of USD 2.5 million (2021: USD 3.0 million)
Average price per barrel received was USD 84.9/bbl (2021: USD 60.4/bbl)
Adjusted EBITDA (before hedge costs) of USD 35.1 million (2021: USD 21.1 million)
Adjusted EBITDA of USD 24.7 million (2021: USD 19.8 million)
Operating Profit* of USD 19.0 million (2021: USD 9.3 million)
Cash generated from continuing operations USD 12.0 million (2021: USD 12.6 million)
Cash flow used in investing activities USD 15.6 million (2021: USD 13.9 million)
Year-end cash USD 12.1 million (2020: USD 18.3 million)
* Before SPT, Impairments and Exceptional Items
New Capital Allocation Policy
The Company aims to distribute 15% of operating cash flow to shareholders, for each calendar year when
the realised oil price is greater than $50/bbl, and at least 20% of operating cash flow for periods when the
realised price is above $80/bbl
Payment of a modest but sustainable dividend and the scope for additional distributions in the form of
share buybacks or special dividends
Expected to include a total dividend (split 1/3 interim, 2/3 final) of 1.5p per share, provided the realised
price is at least $50/bbl
It is expected that the maiden interim dividend will be declared following publication of the 2023 interim
results, in Q3 2023, followed by a final dividend declared following publication of the 2023 preliminary
results in Q2 2024
Positioned for Next Growth Phase and progressing catalysts
Dynamic strategy for growth is underpinned by a strong balance sheet and resilient and dependable cash
flow
Clearly defined, risk-mitigated strategy to drive returns for shareholders focus on maximising value from
existing assets and through acquisitions and partnerships
Strengthened Management Team
Additions of Julian Kennedy, Mark Kingsley and Alistair Green further strengthening
financial/commercial, operational and wider industry skill sets
Creation of Technical Committee
Focused on risk-mitigation and assurance of opportunities which can increase scale and optimise
returns
Post Period Highlights
Continued momentum into Q1 2023
Q1 production levels resilient with sales volumes averaging 2,899 bopd (Q4 2022: 2,961 bopd). Average
production in 2023 will be influenced by the timing and outcome of the drilling campaign and continued
workover and recompletion programme.
Average realisation of USD 67.9/bbl for Q1 2023 (Q4 2022: USD 75.4/bbl, Q1 2022: USD 83.1/bbl)
Cash balance of USD 11.4 million (unaudited) as at 31 March 2023 versus USD 12.1 million as at 31
December 2022 and USD 17.5 million as at 31 March 2022.
The Group had drawn borrowings (overdraft) of USD 2.3 million as at 31 March 2023 (USD 2.7 million
as at 31 December 2022 and USD 2.7 million as at 31 March 2022).
On 9 January 2023, the Company submitted a bid for the Buenos Ayres block in the 2022 Onshore and
Nearshore Competitive Bid Round. The results of the Bid Round are expected shortly.
On 3 May 2023, the Government of Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI)
provided confirmation of the renewal of the PGB Licence for an additional 25 years from the Effective Date
of 18 December 2012. Consequently, the PGB Licence expires on 17 December 2037. There were no
additional liabilities and commitments arising from the renewed Licence.
The Company commenced drilling the Jacobin prospect on 15 May 2023, the first of the nine Hummingbird
deeper prospects our 3D seismic has identified across our Palo Seco acreage.
Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:
During 2022 Trinity initiated an ambitious growth programme, seeking to develop a series of catalysts to drive
shareholder value that we are now starting to execute in 2023. We have actioned three key growth initiatives
which we believe have the potential to deliver meaningful value for shareholders.
Our core business has continued to perform consistently, forming the basis upon which the capital allocation
policy has been designed. The spudding of Jacobin is an important milestone for the Company and will help
determine our further activities throughout 2023 as we look to harness the potential of the extensive Palo Seco
play which extends into the Buenos Ayres block to the west, which Trinity applied for in the 2022 Onshore Bid
Round. On Galeota we initiated a revised development plan, including the existing Trintes producing field as
well as appraisal and exploration opportunities, which we are aiming to finalise by Q4 this year.
2022 was a significant year for Trinity and 2023 has begun to bear the fruits of this work. I believe we have the
right focus to deliver further progress and I look forward to updating our key stakeholders as we move through
the year.
