Bankers Petroleum provided its 2015 financial results. Revenue in 2015 was $287 million ($40.18/bbl) compared to $583 million ($77.26/bbl) in 2014.
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Field price realization represented 77% of the Brent oil benchmark price ($52.39/bbl) as compared to 78% of the Brent price ($98.95/bbl) in 2014. The reduction as a percentage of Brent compared to the previous year was mainly due to an increase in domestic sales during 2015.
Royalties to the Albanian Government and related entities were $40 million (14% of revenue) during 2015 compared to $86 million (15% of revenue) for 2014.
During 2015, adjusted funds generated from operations were $152 million ($0.58 per share) compared to $304 million ($1.17 per share) for 2014.
The company continues to maintain a strong financial position at December 31, 2015 with cash and restricted cash of $69 million and working capital of $161 million.
At the end of 2015, Bankers Petroleum had drawn $119 million from its credit facilities, as compared to $104 million at the end of 2014. At December 31, 2014, cash and restricted cash was $73 million and working capital was $201 million.
During 2015, Bankers Petroleum entered into three costless collar hedging contracts for 2016, representing 4,000 bopd at an average floor price of $54.31/bbl and average ceiling price of $57.29/bbl of Dated Brent.
At December 31, 2015, the fair value of these contracts was $20 million. The 2015 hedge program represented a gain of $58 million, and comprised a good portion of funds generated from operations.
Subsequent to December 31, 2015, the company has signed a formal binding agreement with the Albanian National Agency for Natural Resources (AKBN) and the Minister of Energy and Industry to engage a third-party international auditor to assist in resolving the outstanding cost recovery audit. ■
Under an intense surge of arctic air, Friday morning will begin with the coldest temperatures so far this season across much of the central and eastern U.S. with blustery conditions and a piercing wind chill.