Page 15 - AfrOil Week 46 2022

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
South African equity

investor cashes in on
Europe’s energy crisis with

20% ROI since early 2022

A top equity investor, Coronation Fund Manag-
ers (Coronation), has made a return on invest-
ment of 20% so far in 2022, benefitting from
investments it made in companies strategically
placed to capitalise on Europe’s energy crisis,
Bloomberg reports.
In raking in the high returns, the South Afri-
ca-based fund beat all but one of the 440 funds in
Africa and the Middle East that the news agency
has tracked, it reported on Wednesday, Novem-
ber 16.
Coronation’s gains compare with a 16%
slump in the S&P 500 Index and an even steeper in Morocco and Egypt, according to a statement Cash balance at September 30, 2022, of
drop in emerging-market stocks. on Thursday, November 17. $207.3mn (at December 31, 2021: $58.9mn),
Rising prices of coal and other commodities The production reached 512 barrels a day and with no debt outstanding and an undrawn cor-
after Russia invaded Ukraine in February 2022 19.3mn cubic feet a day. porate facility of $100.0mn.
boosted shares in commodities multinational SDX’s completed 14 wells in the nine-year The Company launched a Normal Course
Glencore and South African miner Exxaro period. The company’s operations in South Dis- Issuer Bid (share buyback) programme on Sep-
Resources, among key holdings for the Cape ouq in Egypt are going well with the completion tember 27, 2022. Since that date, until November
Town-based fund that oversees about $33bn in of all three planned wells, SDX said. However, 11, 2022, a total of 15,757,710 Africa Oil com-
assets. output at West Gharib has fallen due to drilling mon shares were repurchased, at a bid cost of
In the last quarter, Coronation co-managers delays and higher water and sand production at $35.7mn.
Nicholas Stein and Nicholas Hops bought shares parts of the Meseda field. Paid the second semi-annual dividend of
in oil and gas producers, New York-listed EOG In Morocco, SDX said that its SAK-1 and $0.025 per share to the Africa Oil shareholders
Resources and ASX-quoted Woodside Energy. KSR-20 wells will be brought into production in for a total 2022 distribution of $23.8mn, which
They have a “very positive” view on global lique- Q4 2022. combined with the share buyback, represents a
fied natural gas markets in the next five years as The company said that it is updating its 2022 total shareholder capital return of $59.5mn year
Europe “scrambles to meet its energy needs,” the capex guidance to $26.5-28mn from $25.5- to date.
managers wrote in a recent commentary cited 27mn, as it has incurred higher than antici- Selected Prime’s results net to Africa Oil’s
by Bloomberg. pated standby charges for drilling equipment in 50% shareholding achieved an average realized
“The world has been very aggressive in trying Morocco. oil price of $101.5 per barrel, the highest quar-
to cancel energy supply without really canceling “The remaining capex activities for 2022 terly average since the acquisition of a share-
energy demand,” Stein said in a separate inter- includes two wells in West Gharib, a well work- holding in Prime, compared to the average
view last week. “Energy transitions happen over over in South Disouq and the completion and Bloomberg Dated Brent price of $99.1 per barrel
decades,” with heavy industry reliant on coal, oil connection of one well in Morocco,” it said. for Q3 2022;
and gas, he said, adding: “It’s not easy to switch bna/IntelliNews, November 18 2022 average daily W.I. production of 22,100
it off very quickly.” Along with underinvestment boepd and economic entitlement production
in the supply base, “demand is stickier than one Africa Oil announces Q3 of 25,200 boepd (84% light and medium crude
thinks,” he said. oil and 16% conventional natural gas) in Q3
bna/IntelliNews, November 17 2022 2022 financial results with 2022 (Q3 2021: 27,500 boepd and 30,100 boepd
respectively);
record realised oil price cash position of $309.6mn and debt balance
PERFORMANCE of $474.7mn at September 30, 2022 (net debt of
Africa Oil Corp has announced its financial and $165.1mn), which combined with the $207.3mn
SDX Energy’s production operating results for the three and nine months cash balance at the Africa Oil corporate level,
results in a net cash position of $42.2mn;
ended September 30, 2022.
rises 3% as operations in dividend from its shareholding in Prime for - $192.1mn); and cash generated from operating
Highlights: The Company received one
in Q3 2022, EBITDAX of $210.6mn (Q3 2021
Egypt, Morocco grow $50.0mn in Q3 2022 (first nine-month 2022 total activities of $62.1mn (Q3 2021: $122.2mn); and
of $212.5mn). Total amount of the dividends robust Net Debt to EBITDAX6 ratio for the 12
SDX Energy’s gas production rose by 3% y/y in received so far in 2022 is $250.0mn, including months ended September 30, 2022, of 0.3x (12
January-September as business operations grew $37.5mn received in October 2022. months ended December 31, 2021 – 0.4x).

Week 46 17•November•2022 www. NEWSBASE .com P15