DukeDosh
17 Mar 2016
RBC Note on FY15 Prelims This from RBC Capital earlier today:SIA.L - Continuing to Pay DividendsMarch 17, 2016 3:15 am ETSOCO this morning announced headline FY15 numbers, including a 2p dividend with potentially more to come, which were in line with our expectations; but, the clean numbers included an earnings beat. The release focuses on maintaining cash margins and value over volume, with FY16 spending dependent upon its contribution to the bottom line. Management is scheduled to host an analyst presentation at 10.15.FY15 Numbers: Production of 11,976boe/d, generated revenues of $215m, and $80m of cash flow before interest and tax; after capex of $87.5m the company ended 2015 with cash of $214m (as previously guided). SOCO reported a loss for the period of $34m; we were forecasting a loss of $29m. However, we were anticipating an impairment charge for CNV and assumed February's unsuccessful MPS well would impact H1/16 numbers; in contrast the company expensed MPS ($23m) and announced no impairment charges for any of its producing fields at year-end. Adjusting for this variance, there was an underlying earnings beat of $20m driven by lower G&A and taxes.Dividend: The Board has proposed a final dividend for 2015 of 2p/share ($0.05 forecast). Assuming an oil price at or above current levels and no major adverse surprises, management anticipates that the Board will at mid-year results propose a special payout to be distributed in H2/16.Reserves: SOCO ended 2015 with reserves of 37.3mmboe, down from 40.8mmboe; a (surprise) upward revision at CNV partially offset production of 4.4mmboe. An updated Reserve Assessment Report has been completed for the TGT field and a full field development plan is scheduled to be submitted in Q2/16.2016: This year's exploration and development budget is fully funded from existing cash resources, FY16 guidance includes production of 10-11,500boe/d, opex of $10/boe and capex of $54m including the expensed MPS well. A deferred payment of $52.7m associated with 2005 sale of Mongolia interests is expected to be fully received in the next 12 months, and this could lead to an additional distribution to shareholders in H2/16. The Congolese authorities have agreed to a 12 month extension to the previous March 2016 Marine XI licence expiry. Two long serving Non-Executive Directors, John Norton and Bob Cathery, are not seeking reappointment at the upcoming AGM.SOCO will be presenting on Friday in London as part of our Winter Lunch Series.
GoPaddy
04 Dec 2015
OPEC Is there a expected official time when an announcement from OPEC will be made today?
numberbiter
01 Dec 2015
Re: Don't panic! I never do that (buy on a downturn), but I am not selling either.
sage in the hills
23 Nov 2015
Re: Don't panic! Then buy tonnes more on your convictionSAGE
numberbiter
20 Nov 2015
Don't panic! There is no justification for thrashing this share as badly as it has been. We need to hold our nerve.
aspace
19 Nov 2015
Re: We always knew we awaited oil uplift ...... "Therefore, the board will decide on the level of future cash returns in light of the oil price, cash flow generation from Vietnam and expected capital expenditure at the time."That final sentence hints at an impending dividend cut. Ughhh, the last thing I need on top of negative capital return. Dividends were what made SOCO a nice one to hold in spite of the declining price.
sage in the hills
18 Nov 2015
We always knew we awaited oil uplift ...... With production averaging 12 thousand barrels of oil equivalent per day (kboepd) in the first ten months of the year, Soco has increased guidance for 2015 from 11-12 kbopd to 11.8-12 kboepd, thanks to the early start-up of the H5 wellhead platform of the Te Giac Trang (TGT) field in the Cuu Long basin.TGT has averaged 34kboepd, with Soco's 30.5% stake worth 10.2kboepd. One month ahead of schedule and under budget, H5 started pumping in August and is currently producing from five wells. Unfortunately, production of 9kbopd is behind both expectations and an initial 11-12kbopd flow rate, although bosses think unperforated intervals will increase that.Soco's updated reserve assessment report has been completed, too, and will be presented to the Vietnamese authorities soon. A new field development plan (FDP) should be submitted in the first quarter of 2016. Until it has been approved, no firm production target has been agreed, although preliminary is just 10-11.5kbopd.graph 1(click to enlarge)"The delay to the original Q4 2015 schedule reflects the complex architecture of the revised geoscience model and integrated approach to field development and reservoir management," explained the group. "The scope of the development programme in the updated FDP is expected to include additional wells and facilities options to increase water handling capacity."Issues with reservoir pressure maintenance at the Ca Ngu Vang field has forced a cut in 2016 forecasts to 25% below 2015 levels. Production reached 1.8kboepd from January-October thanks to higher-than-expected uptime.Budget-wise, the group still expects capital investment to reach around $90 million (£59 million) in 2015, although some of the $25-$30 million cost of the Mer Profonde Sud in Congo could be also be booked before the year end if drilling begins ahead of schedule, currently pencilled in for the first quarter of 2016.Soco is still working with PetroVietnam and SOVICO Holdings to decide a Production Sharing Agreement over the Blocks 125-126 offshore Vietnam. As it looks to maximise value from its Africa portfolio, management is looking forward to the $52.7 million earn-out payment from the sale of its Mongolia interest in 2005. But how much of this shareholders will see is uncertain."The company remains committed to its long-term strategy of targeting cash returns to shareholders and pursuing future growth; at the same time, with the current oil price uncertainty and potential capital commitments, SOCO believes maintaining its balance sheet and strategic flexibility is important to deliver long-term value and growth to shareholders," said Soco Wednesday."Therefore, the board will decide on the level of future cash returns in light of the oil price, cash flow generation from Vietnam and expected capital expenditure at the time."SAGE
II Editor
18 Nov 2015
NEW ARTICLE: Soco missive triggers sell-off "A broker warned just three weeks ago that things could only get worse for the oil exploration sector. They were right. Fear of the unknown has just wiped millions from LSE:SIA:Soco's market value after the Vietnam- and Africa-focused firm ..."[link]
sage in the hills
13 Aug 2015
Much improved and excellent news Soco International (SIA) said first oil and gas from the H5 Wellhead Platform (H5-WHP) of the Te Giac Trang (TGT) field occurred on Aug. 10 following perforation of the first of the H5 development wells.The start of production has been achieved more one month ahead of schedule and the H5 development project has been completed with zero lost time accidents.The perforation campaign will continue over the next two weeks targeting the optimal balance between maximising new production from the H5-WHP, natural production decline rates and water-cut from the existing wells with total liquids handling capacity on the FPSO currently available to the TGT partners.SAGEFurther information on performance will be provided in due course.The H5-WHP is located in the south of the TGT field in Block 16-1 in the Cuu Long Basin, off the southern coast of Vietnam, approximately 100 kilometres from Vung Tau, 20 kilometres northwest of the Bach Ho field and 35 kilometres west of the Rang Dong field.
oilinvestor85
09 Jul 2015
Lambrini Girl- Charts/ Diagonals Share price is now 160 and bounced off 153p during the day....How are your diagonals at 180p doing ???PS it is rhetorical question I was never a big believer in charts ...
trader jack
01 Jul 2015
Re: Second time in a matter of weeks I had thought of that but it does not explain why it moved up and the down to a far greater degree than say BP or RDSB under the same conditions.
lambrini girl
01 Jul 2015
Re: Second time in a matter of weeks Can anyone explain apart from the fact the sellers come in the afternoon rather than the morning?<<Oil Price dropping..
trader jack
01 Jul 2015
Second time in a matter of weeks That the share price has climbed in the morning by about 2.5percent and then dropped in the afternoon by a similar percentage or even greater even when the overall markets are climbing.The last time something similar happened was (from memory) 19th June 2015Can anyone explain apart from the fact the sellers come in the afternoon rather than the morning?It seems weird.
Clued-in
14 Jun 2015
Re: corrupt Cannot understand your post - what is 'c o e' and what is 'awiva' please ? I presume you intended a full stop after '......out.' ?
Clued-in
14 Jun 2015
Re: Contagion is everywhere Yes-Contagion is everywhere, most currently FIFA comes to mind. Those in power and influential positions will always - not everyone, there are some honest persons in these positions- take advantage of their positions, usually financially but sometimes otherwise as in the case of Strauss-Kahn. Amazes me how the latter is present at current ALPS talks with world leaders, do these guys have any conscience/embarrassment, how can they invite such a person considering the activities that he has admitted he engaged in ? Same for S Blatter, still as popular as ever amongst the elite ? Even in my small employer's firm, latter had to buy xmas presents not so many years ago for buyers at reputable large retailers or he would risk losing their business- as accountant at such a firm I have seen no recent evidence of such bribes/gifts but they probably still go on as cash/presents under the table. It's part of life and hasn't changed since the start of time........why are so many surprised by it ?
