March 20, 2012
Po Valley Energy (ASX:PVE) has today announced its financial results for the year ended 31 December 2011.
Highlights
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
MEDIA CONTACTS:
Giovanni Catalano
Po Valley Energy
+39 06 42016275
Michael Mullane
Cannings Corporate Communications
+ 61 2 8284 9990
mmullane@cannings.net.au
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