Activa Resources AG
Activa Resources AG stays EBITDA positive in the first half of 2015 despite weak oil price
DGAP-News: Activa Resources AG / Key word(s): Half Year Results Activa Resources AG stays EBITDA positive in the first half of 2015 despite weak oil price – H1 Group revenues drop by a modest 11.2 % to EUR 2.36 million – H1 EBITDA remains positive at EUR 0.49 million (vs. EUR 0.99 million) – Oil and natural gas production rises 23 % – Management plans full year positive EBITDA despite difficult market environment Bad Homburg, 28th September 2015. Activa Resources AG, an independent oil and gas producer, has today published its 2015 Interim Report in which it details how the company has succeeded in largely compensating for the almost 50 % y-o-y drop in US oil prices. Thanks to a high degree of operational flexibiltiy Activa recorded a modest 11.2 % fall in revenues to EUR 2.36 million in the first half of the year (vs. EUR 2.65 million in 2014 H1). This was achieved by increasing oil and natural gas production by 23 % to 56,322 BOE, significant hedging income and further cost cutting. These factors enabled the Bad Homburg based company to generate positive EBITDA during the first half of 2015 amounting to EUR 0.49 million (vs. EUR 0.99 million in 2014 H1). Significantly higher depreciation charges (EUR 795k) and currency effects are largely responsible for a group net loss of EUR 0.7 million (vs. EUR 0.1 million net profit in 2014 H1). After the oil price began its dramatic fall in the second half of 2014 Activa’s management implemented immediate cost saving measures which included a 40 % reduction in the company’s US headcount. Costs have been further cut in 2015 leading to significantly lower other operating expenses. The impact on the company’s group financial statements (in Euros) has been offset by the strength of the dollar when consolidating the US cost base of the operating subsidiary. The additional cost cutting in 2015 is expected to enable Activa to remain EBITDA positive in 2015. The company’s primary aim in the current environment is to generate positive operational cash flows. Leigh A. Hooper, Activa’s group CEO, expects oil prices to remain weak for the remainder of 2015 and into 2016, followed by a moderate recovery to USD 50-70 (WTI) during the course of 2016 and states: “Activa, like all companies in our industry, is currently working through an oil price trough and the fact that we remained EBITDA positive in the first half confirms our ability to quickly and correspondingly adjust to events as they unfurl in this exceedingly difficult market environment”. The full Activa Resources AG 2015 Interim Report is available for downloading from the company’s website www.activaresources.com. The Management Board About Activa Resources AG Forward-looking statements Company contact Investor Relations contact 2015-09-28 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
397873 2015-09-28 |