| ||March 20, 2012|
Po Valley Energy 2011 Financial Results
| ||Po Valley Energy (ASX:PVE) has today announced its financial results for the year ended 31 December 2011.|
Full year gas production was 28.9 million cubic metres (1.02 billion cubic feet), an increase of 8% from last year (2010: 26.7 million cubic metres)
Revenue was €9.11 million (AUD 12.2 million), an increase of 27% from last year (2010: €7.16 million)
Earnings Before Interest, Tax, Depreciation and Amortisation was €4.41 million (AUD 6.0 million) up 100% (2010: €2.22 million)
Net cash flow from operating activities was €3.26 million (AUD 4.5 million) up 155% (2010: €1.18 million)
Net after-tax earnings was a loss of €5.07 million and was adversely impacted by a non-cash write down of the Company's Castello production field by €5.83 million (2010 result was loss of €2.32 million)
Cash at bank at 31 December 2011 was €1.89 million (AUD 2.4 million*).
Commenting on the year-end Financial Report Mr Giovanni Catalano, Po Valley's CEO said "The increased operating revenue and results reflects continued growth in gas production, higher realised gas prices and achieved operating efficiencies which gave rise to improved operating margins.
These operating improvements would have resulted in a net profit of circa €0.8 million but for the Company's decision to write down the carrying value of its Castello field. The Company successfully drilled the Vitalba1dirA well at Castello in late 2011 and recommenced production in February this year at an initial rate of 15,000 cubic metres per day (0.5 million standard cubic feet per day). We expect to increase to 17,000 cubic metres per day (0.6 million standard cubic feet per day) over coming weeks. Geological modeling of the reserves is currently being finalised however there is indication that the optimal operation of the field will be achieved by producing at a lower level compared to previous estimates in order to maximize long term production.
Accordingly the board has determined that it is prudent to reduce the carrying value to reflect the likely life-of-field commercial production profile and an anticipated reduction in the field's reserves. The new reserve estimates will be announced once the technical review has been completed by the Company's independent advisors in the next quarter."
1€ = 1.347 AUD - 2011 average
(*) 1€ = 1.272 AUD - as at 31 Dec 2011
Po Valley Energy
+39 06 42016275
Cannings Corporate Communications
+ 61 2 8284 9990
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