Bankers Petroleum posted its 2016 second quarter financial and operational results. Revenue was $41 million ($29.98/bbl), compared to $33 million ($21.04/bbl) in the previous quarter and $86 million ($47.99/bbl) in Q2 2015.
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Field price realization represented 66% of the Brent oil benchmark price ($45.59/bbl) compared to 62% of the Brent oil benchmark price ($33.94/bbl) in the previous quarter and 78% of the Brent oil benchmark price ($61.88/bbl) in Q2 2015.
The increase, as a percentage of Brent, compared to the previous quarter was mainly due to improvements in world commodity prices, therefore reducing the pressure of competitive pricing differential during the second quarter of 2016.
For the six months ended June 30, 2016, revenue was $74 million ($25.20/bbl) compared to $158 million ($43.78/bbl) for the same period in 2015.
Royalties to the Albanian Government and related entities during the second quarter of 2016 were $6 million (14% of revenue) compared to $4 million (13% of revenue) for the previous quarter and $12 million (14% of revenue) for the second quarter of 2015.
For the six months ended June 30, 2016, royalties were $10 million (14% of revenue) compared to $22 million (14% of revenue) for the same period in 2015.
Funds generated from operations for the second quarter of 2015 were $5 million ($0.02 per share) compared to $1 million ($0.01 per share) for the previous quarter and $50 million ($0.19 per share) for the second quarter of 2015.
Funds generated from operations for the six months ended June 30, 2016 were $7 million ($0.03 per share) compared to $75 million ($0.29 per share) for the same period in 2015.
The company continues to maintain a stable financial position at June 30, 2016, with cash and restricted cash of $26 million and working capital of $84 million. At June 30, 2016, the company had drawn $109 million of its approved credit facilities.
Working capital for December 31, 2015 and June 30, 2015 was $160 million and $161 million, respectively.
At June 30, 2016, Bankers hedged 6,000 bopd under costless collar contracts with an average floor of $50.84/bbl (all prices are referenced to Dated Brent) and an average ceiling of $52.90/bbl for the balance of 2016.
The hedge program generated proceeds of $2 million compared to $7 million in the first quarter of 2016. The 2016 hedge program at June 30, 2016, is valued at $2 million. These contracts are designed to protect Bankers against further volatility in the oil prices in 2016. ■