Africa Oil Corp., AOC, has released its operating and consolidated financial results for the three months and the year ended December 31, 2020.
The Company is also released its 2021 Management Guidance including guidance related to its 50 per cent equity investee, Prime Oil & Gas Coöperatief U.A.
According to the highlights seen by Oriental News Nigeria, Africa Oil fourth quarter net income was in the region of 79.8 million with full-year net income of $198.0 million, excluding a $215.6 million non-cash impairment of Kenya exploration assets posted in the first quarter 2020.
also, strong quarterly profit contribution by Prime to AOC’s net income amounted to $59.2 million.
During 2020, Africa Oil repaid $109 million of its $250 million corporate term loan facility and has commenced the refinancing process for the balance with closing expected in July 2021.
The year ended with cash balance of $40.5 million and working capital of $29.3 million.
During the period in review crude production was about 26,200 barrels of oil equivalent per day (“boepd) and economic entitlement production of 30,100 boepd (83 per cent light and medium crude oil and 17 per cent conventional natural gas), with full year production of 28,700 boepd and economic entitlement production of 33,900 boepd (85 per cent light and medium crude oil and 15 per cent conventional natural gas) which are in line with Third Quarter 2020 Management Guidance .
Africa Oil President and CEO Keith Hill commented: “I am pleased to report strong full-year results for the Company, despite one of the most challenging years for our industry. Our investment in Prime has performed exceptionally well with its strong production and free cash flows that enabled significant deleveraging, both at the Prime and Africa Oil corporate levels.
Prime reduced its RBL debt by $522 million or 29 per cent of the principal amount at the start of 2020. Africa Oil reduced its corporate term loan by $109 million or 44 per cent of the original amount of $250 million that was drawn in January 2020.
We are in a strong position to continue this strong performance and also plan to pursue new business development opportunities with a focus on the acquisition of producing assets, offshore West Africa.
We can also look forward to exciting catalysts through our other portfolio investment companies.
These include further progress in the development of Block 11B/12B discoveries, offshore South Africa, the drilling of the Venus exploration well in Block 2913B, offshore Namibia and the drilling of the Gazania exploration well in Block 2B, South Africa.
We also continue to work closely with the Government of Kenya and our JV partners to progress the South Lokichar development project. I am confident that we can realize the significant potential in this project supported by a recovery in the commodity markets and a return to a normal business climate with the COVID-19 recovery gathering momentum.”