Wentworth Reports Higher Earnings, Pays Dividend

Independent UK producer Wentworth reported April 24 revenues of $18.6mn on its 2019 sales in Tanzania, underpinned by long-term, fixed-price contracts. Its adjusted pre-tax earnings (Ebitda) net of exploration expenses were $8.8mn, up 6% on 2018.

Mnazi Bay production averaged 70.3mn ft³/day, down from 2018's 83.2mn ft³/day, owing to fluctuating demand but in line with guidance of 68-72mn ft³/day. Capacity from existing wells and production facilities has gone up above 100mn ft³/d, while the cost of production is just $0.69/'000 ft³, about a fifth of the sale price.

Unusually for a company in the sector it is paying a dividend, representing a yield of 7.2%, based on the April 20 share price.  It is also debt free with cash in hand of $14mn at end March 2020, and its main customer, the Tanzanian Petroleum Development Company, has improved its payments.

Wentworth’s share of gross 2P reserves as at end-2019 are estimated by an independent entity at 95.1bn ft³ with a post-tax net present value of $118.6mn, it said. The operator and partner is Maurel & Prom, a subsidiary of Indonesian state Pertamina.