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Guys! If you want a shot in the arm, click Rick Rule BNN video on Africa Oil. Rick is a Canadian analyst. AOiff is an unbelievable gem.
Yeah, TD, my divi came in if you want to call it that. I'm sure yours is on the way.
Thanks douginil. I was expecting double the amount to 5cents. But you're right, a special divi of 5 or ten cents would have easily been doable by AOC since they have apparently added more shares to the total rather than initiate any buybacks.
Two and a half cents per share. Very difficult to avoid being sarcastic or cynical. I'll gladly take it considering the alternative. But jeeeze...Hoping for better times in blue bayou.
Fabulous news Douginil. Can't wait to (see) our individual dividends.
Does anyone know of carbon offset (for carbon credits) projects or corporations? Would love to invest in pollution control systems.
Korpin, understand, your concern is ours as well. I will give the benefit of the doubt for today is X divi day. Price normally drops on X divi day, but today it held. Down only .015 on 187,000 shares. Who would sell on an x divi day and not collect at least 5cents a share?
I love to buy on an upswing with momentum. So hanging fire for the moment. Better be one hell of an ER on May 12.
I need to know what cargoes have been approved and delivered. Their gross volume in Barrels and their price and the exact day new hedges are put in place. In other words, WTF is going on.
Great point douginil. And not much support added to strengthen the sp.
MAY 12, 2022 Next quarterly report due. They gotta announce something better than a 5 cent divi. Still bullish after all these years.
Thanks futrcash. Really nice. Good news,
Reading some garbage on the yahoo boards. Can someone clarify for me the following. AOC is hedged at roughly $69-$70 per BBL. Any price above that they have to pay royalties to someone??? I think that's BS but cannot believe they would owe money they never received. Comments por favor.
I agree futrcash. Article is shallow and leaves out pertinent data including a change coming for Kenya.
Note: The analyst who wrote this article was negative toward AOC. and its future earnings.
Simply Wall St
Thu, March 3, 2022, 3:08 AM
In this article:
AOIFF
-9.42%
Africa Oil's (TSE:AOI) stock is up by a considerable 24% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Africa Oil's ROE in this article.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
View our latest analysis for Africa Oil
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Africa Oil is:
20% = US$191m ÷ US$948m (Based on the trailing twelve months to December 2021).
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.20 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Africa Oil's Earnings Growth And 20% ROE
To begin with, Africa Oil seems to have a respectable ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 17%. This certainly adds some context to Africa Oil's exceptional 21% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
On the whole, we feel that Africa Oil's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.
I agree with your comment "share price should do better". But emotions get in the way of some investors.Volume today is light which might indicate a near term bottom for the stock. I just bot another 1000 shares.
Doing bad? Where? Please go to the website and read the comments/qualifications by Keith Hill and Pascal Nicodeme on the status of AOC and its resources. Down 12%+- by fearful investors is not a reason to bail.
The reception was difficult to hear clearly so accent could have been anything.
Just listened to the conference call. Very disappointing in terms of the quality of the reception. Difficult to comprehend speakers with a strong accent and an echo in the room. I will listen to the recording and see if that's better. Stock down 12% so others were also disappointed. Could be a great time to buy???
Korpin. A couple of things. Africa Energy has little money and some debt. The couldn't put a pool party and BBQ together. But they got drilling rights and Africa oil owns a piece of AFE.V Africa Energy up 3 cents today to .27 Cents.
I hope AOC can find oil in their own right to generate 100% cash flow to themselves. 5 Cents semi annual divi..I'm underwhelmed.
No word on buybacks. Needle won't move.. Hope I'm wrong. At least hedges coming off with new price per barrel roughly $80.
AND;
022 MANAGEMENT GUIDANCE
The Company’s 2022 production will be contributed solely by its 50% shareholding in Prime. The 2022 Management Guidance includes WI production guidance range of 22,500-25,500 boepd and net
entitlement production range of 23,000-27,000 boepd with approximately 84% expected to be light and medium crude oil and 16% conventional natural gas.
Net entitlement production estimate is based on a 2022 Brent price of $87.0/bbl being the average of the Brent forward curve as of February 15, 2022. Net entitlement production is calculated using the
economic interest methodology and includes cost recovery oil, tax oil and profit oil and is different from WI. production that is calculated based on project volumes multiplied by Prime’s effective WI.
Prime is continuing its hedging program with the target of covering 50%-70% of its planned cargoes over a rolling 12-month look-ahead period. For the period Q2 2022 to end Q1 2023, only 5 out of 11
cargoes that are scheduled to be lifted by Prime have been hedged, providing the Company with material exposure to oil prices.
It is expected that Prime will lift 11-13 cargoes (5.5-6.5 cargoes net to the Company) in 2022 for its share of cost and profit oil. The average cargo lifted is for one million barrels of oil. Prime has forward sold its first 10 cargos in 2022 at average Dated Brent price of $73.1/bbl. The actual price will include a quality and shipping cost adjustment which means the realized price will be different to the hedged prices. At the date of this press release, Prime has lifted 3 cargoes with an average realized price of $66.0/bbl and is expected to lift another two cargoes by end of Q1 2022 at average Dated Brent price of $70.1/bbl. Remaining five cargoes that are sold forward are at average Dated Brent Price of $78.6/bbl.
Based on the above production and cargo lifting ranges and Prime’s current 2022 hedging program, the Company’s management estimate Prime to generate cash flow from operations of approximately $300-$400 million net to the Company’s 50% shareholding.
Any dividends received by the Company from Prime’s operating cash flows and cash on hand will be subject to Prime’s capital investment and financing cash flows, including Prime’s RBL interest payments and principal amortization. Net to the Company’s 50% shareholding, Prime’s 2022 capital investment is expected to be in the range of $40-$70 million and its net debt repayment in the range of $200-$230 million. Prime had a cash and cash equivalents balance of $258.9 million net to the Company’s 50% shareholding at December 31, 2021.
Someone was too optimistic...
Suite 2000
885 West Georgia Street
Vancouver, B.C. Canada V6C 3E8
Ph. 604-689-7842
* Important information: Africa Oil's interest in Prime is accounted for as an investment in joint venture. Refer to Note 1 on page
5 for further details. Please also refer to other notes on page 5 for important information on the material presented.
NEWS RELEASE
AFRICA OIL ANNOUNCES RECORD FINANCIAL RESULTS,
SHAREHOLDER DIVIDEND POLICY
AND 2022 MANAGEMENT GUIDANCE
February 28, 2022 (AOI–TSX, AOI–Nasdaq-Stockholm) – Africa Oil Corp. (“Africa Oil”, “AOC” or the
“Company”) is pleased to announce its operating and consolidated financial results for the three months and the year ended December 31, 2021, together with its 2022 Management Guidance. The Company
is also pleased to announce the introduction of a regular shareholder dividend policy as part of its commitment to returning excess capital to its shareholders.
Highlights
? Record full-year net income of $190.7 million or $0.40 per share.
? Cash balance at December 31, 2021 of $58.9 million. Our corporate facility has been fully repaid and $100m of the facility remains available for general corporate purposes until December 2022.
? The Company will institute a shareholder dividend policy with an initial 2022 aggregate annual distribution of $0.05 per share (approximately $25 million) to be paid semi-annually, with the first payment payable on March 31, 2022, to shareholders of record at the close of business on March 17, 2022.
? Venus 1-X exploration well results in a major light oil discovery on Block 2913B (the Company has a 6.2% indirect interest through its shareholding in Impact Oil & Gas Limited), offshore Namibia, that together with the nearby Graff-1 discovery on the adjacent Block 2913A (the Company has no interest in this block), herald the opening of a major petroleum province with significant upside potential for the Company.
? Positive year-end 2021 statement of reserves with working interest (W.I.) proved plus probablereserves (“2P”) replacement ratio of 102% (year-end 2020: 114%).
? Selected Prime’s results net to Africa Oil’s 50% shareholding*:
o full-year W.I. production of 27,300 boepd and economic entitlement production of 29,700 boepd (84% light and medium crude oil and 16% conventional natural gas) are at the top end of 2021 Management Guidance 2,3; and o In Q4 2021, EBITDAX of $163.4 million (full-year period: $654.5 million) 4.
In Q4 2021, cash generated from operating activities of $60.6 million (full-year period: $526.7 million, includes $152.5 million of Agbami Security Deposit received). o Cash position of $258.9 million and debt balance of $508.4 million at December 31, 2021; Robust Net Debt to EBITDAX of 0.4x in 2021.
? 2022 Management Guidance (refer to page 3 for more details):
o Average daily W.I. production range of 22,500-25,500 boepd and net entitlement production range of 23,000-27,000 boepd net to the Company’s 50% shareholding in Prime, with approximately 84% expected to be light and medium crude oil and 16%
conventional natural gas; and o Prime’s cash flow from operating activities of $300-$400 million net to the Company’s 50% shareholding in Prime.
- 2 -
? Inaugural ESG Review published in March 20 21, followed by a comprehensive Sustainability Report, including TCFD compliant scenario analysis, published today, 28th February 2022.
? In 2021, the Company set a target to achieve carbon neutrality by 2025. Towards this goal, the Company purchased an initial tranche of offsets covering >20% of Scope 1 and 2 emissions from a Gold Standard certified clean cookstove project in Kenya, and began feasibility studies for direct investment in a proprietary nature-based carbon removal project.
Africa Oil President and CEO Keith Hill commented: “We had a very strong financial year as demonstrated by our record earnings and the full repayment of our corporate debt, and I am pleased that we are now in the robust financial position to able to announce our inaugural dividend. This strong position will allow us to continue to pursue accretive production acquisition opportunities while returning
excess cash to shareholders. We remain bullish about oil prices and opportunities in the current energy transition environment.”
2021 Fourth Quarter Financial Results
(Thousands United States Dollars, except Per Share and Share Amounts)
December 31,
2021
December 31,
2020
Cash and cash equivalents 58,885 40,474
Total assets 991,618 910,499
Short-term debt - -
Long-term debt - 141,000
Total liabilities 43,560 156,212
Total equity attributable to common shareholders 948,058 754,287
Year ended Year ended
Net income/(loss) per share - basic and diluted 0.40 (0.04) 0.12 0.17
Number of shares outstanding ('000s) 474,655 471,
The financial information in this table was selected from the Company’s audited consolidated financial statements for the year ended December
31, 2021. The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the
year ended December 31, 2021 and 2020 have been filed on SEDAR (www.sedar.com) and are available on the Company’s website
(www.africaoilcorp.com).
Painful "ripping".
Thanks Manuel. Futures market is ripping. OPEC determines output on Wednesday. Should be an "interesting" week.
Just checked Pancon's financials. 28mil market cap. share price =.004... They are losing money hand over fist. But they got drilling rights.
Douginil...Do you think Keith Hill has or is considering Pancontinental?
Thank you future.. Just wasn't sure. FYI... I'm not a chartist or technical analyst. Just fundamental analyst. So told my daughter about AOC. She is a chartist and connects with others around the world. I told her about AOC and she said "Let me get others opinions about AOC". Well, they figure near term about $6.88 per share prob in March. One of her mentors said "let me look at the fundamentals". They are going to be blown away IMO. Can't wait for Monday ER/annual rep. and the Tuesday conference call.
Hi futrcash. reL your article. (Could drive 100 africa oil. Please explain what 100 means. 100 barrels, $100 per share, etc..???
Me too, but last time I was there was 1963. God I'm old!
Well guys (no pun intended) If this baby hits $8 bucks a share, I'm going to the AOC annual meeting in Vancouver.
douginil... Very very nice.
You gotta be 70 or more to buy AOC.
Yeah, but I'm certifiable...Lol
Here's something from UPSTREAM.
All smiles: TotalEnergies' chief executive Patrick Pouyanne will be delighted with results from the Namibian exploration probe Photo: AFP/SCANPIX
“It’s massive”: TotalEnergies makes huge oil discovery off Namibia with “exceptional” Venus-1 wildcat
Sources describe French supermajor’s ultra-deepwater discovery — where pre-drill resources stood at about 1.5 billion barrels — as “an elephant” find 23 February 2022 18:09 GMT Updated 23 February 2022 23:14 GMT
By Iain Esau: in London
French supermajor TotalEnergies has made a “massive” oil discovery with its Venus-1 wildcat offshore Namibia, Upstream has been told.
There are well-founded suggestions that this ultra-deepwater structure in 3000 metres of water could be a multi-billion-barrel oil discovery, further confirming an earlier Upstream report that the initial results from the wildcat were positive.
Life on Venus: TotalEnergies’ Namibia wildcat hits reservoir amid optimism
Read more
The Venus probe represents another game-changer for Namibia’s government, which was already on a major high after Shell made another huge oil find with its Graff-1 probe just to the east.
The country was previously a dry-hole hell for explorers, but the results at Venus and Graff will fire up huge interest in Namibia’s part of the long-neglected Orange basin, a now proven hydrocarbon province that also extends into South African waters.
Upstream was told by a well-watcher familiar with Venus-1 that the well results to date are “exceptional” and that TotalEnergies and its partners — Qatar Energy, Impact Oil & Gas and state-owned Namcor — are “absolutely shocked” by the size of the discovery.
Shell poised to spud appraisal well on potentially huge Graff oil discovery in Namibia
Read more
“It’s beyond their wildest dreams; it’s massive; it’s an elephant discovery,” the source said.
Another well-placed southern African executive agreed with these descriptions, saying: “I fully concur.”
Pre-drill resource estimates for the structure stood at about 1.5 billion barrels of oil based on 60 to 70 metres of net pay, according to an informed source, who added that “if the reservoir is thicker, the numbers are mind blowing”.
Lift off: Namibia confirms Shell's Graff-1 wildcat as an oil discovery
Read more
A knowledgeable source told Upstream that the Venus-1 probe looks to have hit close to 100 metres of charged reservoir, although this could not be confirmed.
It is understood that coring and sampling of the well — which was drilled to a depth below the rig floor of more than 6000 metres — have taken place along with several days of wireline operations, plus other tests.
The quality of the crude it unclear, but there is speculation that it could be light oil, with associated gas.
Results of Shell's play opening Namibia wildcat set to be unveiled
Read more
TotalEnergies is set to plug and abandon Venus-1, as under its original plan, with operations on the well said to be close to being wrapped up.
It is currently unclear if the operator plans to keep the drillship Valaris DS-10 in Block 2913B to immediately drill an appraisal well.
If the size of Venus-1 is confirmed it will give huge encouragement to operators of Namibian acreage just to the north.
UPDATED: Shell finds oil with closely watched Namibian wildcat
Read more
These include two Australia-based juniors — Pancontinental Oil & Gas in block 2713 and Harmattan Energy in Block 2813B — as well as Portugal’s Galp in Block 2813A, which also lies immediately north of Graaf-1, as does acreage held by South African explorer Rhino Resources.
In South Africa, Total Energies operates the Orange Basin Deepwater block immediately south of the Venus block where its partners are Qatar Energy and Sezigyn.
TotalEnergies' tantalising Venus-1 wildcat spuds offshore Namibia
Read more
Other blocks just south of Venus and Graaf are operated by ambitious Eco Atlantic — block 3B/4B — as well as the likes of Sungu Sungu Petroleum.
TotalEnergies has not yet responded to Upstream’s request for comment.
Geeze Talk about anticipation. Can't wait for Monday.
Amen futr. At 78 I'm keeping good health as number 1 but AOC is right up there. I'm lucky today with a heavy duty gain.
Thanks douginil for the info. Very encouraging. The beginning of a perfect storm for some of us. Wish I could have had this experience when I was 30. But I'll take what I can get.
Suite 2000
885 West Georgia Street
Vancouver, B.C. Canada V6C 3E8
Ph. 604-689-7842
africaoilcorp.com
NEWS RELEASE
AFRICA OIL TO RELEASE FOURTH QUARTER 2021
FINANCIAL RESULTS ON FEBRUARY 28, 2022
February 22, 2022 (AOI–TSX, AOI–Nasdaq-Stockholm) – Africa Oil Corp. (“Africa Oil”, “AOC” or the
“Company”) will publish its financial and operating results and related management’s discussion and analysis for the three months and twelve months ended December 31, 2021, after Toronto market close on Monday, February 28, 2022.
Senior management will hold a conference call to discuss the results on Tuesday, March 1, 2022 at 10:00 (ET) / 16:00 (CET). The conference call may be accessed by dial in or via webcast:
Canada +1 647 484 0473
North America toll free 800-289-0459
Sweden +46 (0)8 5033 6573
Sweden toll free 0200 883 447
UK 0800 358 6374
Participant Passcode 419230
Webcast URL https://event.webcasts.com/starthere.jsp?ei=1532170&tp_key=71e
74182db
Please join the event conference 5-10 minutes prior to the start time. A recording of the webcast will be available on the Company’s website after the event.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
Additional Information
This is information that Africa Oil Corp. is obliged to make public pursuant to the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of
the contact person set out below on February 22, 2022 at 2:00 a.m. ET.
For further information, please contact:
Shahin Amini
IR and Commercial Manager
shahin.amini@africaoilcorp.com
T: +44 (0)20 8017 1511
Sophia Shane
Corporate Development
sophias@namdo.com
T: +1 (604) 806-3575
Things get a little more complicated.
From Rig Zone publication:
USA Attempting to Tame Oil Prices Via Iran Deal
by Andreas Exarheas
|
Wednesday, February 09, 2022
USA Attempting to Tame Oil Prices Via Iran Deal
'Any deal could unleash more than one million barrels per day of crude and condensate production within four to six months'.
The U.S. government is attempting to tame oil prices by urgently negotiating a new nuclear agreement with Iran.
That’s according to Rystad Energy’s senior oil markets analyst Louise Dickson, who noted that such a move could reintroduce more than one million barrels of Iranian crude into the market.
“Any deal could unleash more than one million barrels per day of crude and condensate production within four to six months, or even quicker as Iran is thought to have robust oil-on-water storage,” Dickson said in a market note sent to Rigzone on Tuesday.
“The return of Iran’s one million barrels may not have the calming effect that the Biden administration hopes or expects, though, as low OPEC+ supply, increasing demand, and inflation will all keep oil prices elevated,” Dickson added in the statement.
Dickson noted that there is much more room on the market for Iranian barrels now than previously, “primarily due to OPEC+ underperformance, as the group hasn’t produced at its stated target levels since summer 2021”.
The Rystad Energy analyst stated that higher oil consumption growth could also balance out any downside price implications of an Iran deal, as global oil demand remains on a steady track to average 98 million barrels per day in the first quarter of 2022.
“The Omicron variant is loosening its grip on many countries worldwide, and as regulations and travel restrictions are removed, the oil demand outlook is boosted,” Dickson said in the statement.
“The real wildcard for consumption will continue to be China, which has seen weaker than pre-pandemic trends over the Lunar New Year holiday period, suggesting the return to normal is still not a given,” Dickson added.
In a separate market note sent to Rigzone on Monday, Rystad Energy’s head of oil markets, Bjornar Tonhaugen, outlined that U.S.-Iran talks were showing “signs of progress”.
“A nuclear deal would undoubtedly take some pressure off crude prices, as Iran’s shut-in production is among the single-largest source of short-term potential production to the market, aside from Saudi Arabia’s and UAE’s spare capacity,” Tonhaugen said in the market note.
Your words to Gods ears.
Dontcha love rumors???