Premier Oil PLC (PMO) is a London, the United Kingdom-based international oil and gas production and exploration multinational group. The company has oil and gas interests in the Falkland Islands, the North Sea, Latin America, and South East Asia. The company's operations are differentiated according to five geographical segments: the Falkland Islands, the United Kingdom, Vietnam, Indonesia, and the Rest of the World. As opposed to the 'downstream' refining and retail sector, the company is majorly engaged in the 'upstream' sector of the industry – the production and exploration segment. The company is having 7 offices worldwide with an employee base of 782 people.
The company had upgraded its full year guidance related to production. The company reported a 14 per cent rise in the output for year-to-date as compared to the same period of last year in its latest production update. As per the information provided by the company, the average production since the beginning of 2019 was 85,100 barrels oil equivalent per day (boepd). The company updated its full year production guidance to 80,000 boepd from 75,000 boepd.
Premier Oil Plc Share Price Performance
Daily Price Chart (as on May 16, 2019), before the market close. (Source: Thomson Reuters)
At the time of writing (as on May 16, 2019, at 02:20 PM GMT), shares of Premier Oil Plc were quoting at GBX 97.90, up by 8.34 per cent against the previous day close. During the last year, shares have touched a 52w high of GBX 146.90 and a 52w low of GBX 54.70. The company’s stock beta was 3.46, reflecting higher volatility as compared to the benchmark index. Total outstanding market capitalization stood at around GBP 748.11 million.
The company didn’t update its cost guidance and the operating expenses forecasted per barrel stood at US$ 13 and the capital budget stood at US$ 340 million. The company’s current net debt was around US$ 2.25 billion and based on the current oil prices, the company is estimating that it will be reduced by US$ 250-350 million.
According to Tony Durrant, chief executive at Premier Plc, the company is way ahead of its anticipated plans. The company’s growth projects are making good progress, as a result, the company’s debt reduction is rapid than expected and production and free cash flow is ahead of guidance. The company is looking to conclude the Zama appraisal campaign in Mexico and will begin initial drilling in Tolmount East. One of the company’s high return projects, Tolmount Main project will be delivering more benefits to the company with the new operations starting at Tolmount East.
The development of the company’s next expansion project, the Tolmount project is on time and in the budget. The Tolmount is 50 per cent owned by Premier and will have a production capacity of nearly 58,000 boepd once reaches on full capacity. Tolmount is expecting its first gas production by 2020.
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