Kulczyk boosts sales 2.8x yoy, reserves up 30% yoy in 2012
22 March 2013
Kulczyk Oil Ventures (KOV PW) boosted it average net working interest hydrocarbon sales volume 2.5x yoy to 15,9 MMcf/d in 2012, the company reported on March 21 in its annual report. The average hydrocarbon sale price grew 12% yoy to USD 11.95/Mcf, boosting the reported revenue for the period 2.8x to USD 99.6 mln. Average natural gas and condensate netback grew 27.5% yoy to USD 8.15/Mcf. Kulczyk reported a USD 79.0 mln net loss in 2012 on an USD 85.3 mln Brunei Block M write off in 3Q12.
In a separate statement, Kulczyk reported a 32.1% yoy increase in its net working interest 2P reserves to 6,963 MMboe as of end-2012. The company’s 1P reserves grew 7.8% yoy to 3,990 MMboe while its 3P reserves surged 84.8% yoy to 12,845 MMboe as of end-2012. So far, all of Kulczyk’s hydrocarbon deposits classified as “reserves” are located in Ukraine.
Roman Dmytrenko: Though the company’s production results are of little surprise considering its recent operations update, the reserves update brings some cheer to Kulczyk’s investors, suggesting the company had a proved reserves replacement ratio of 124% in 2012. Nevertheless, even after the reserves increase, the company trades at an impressive EV/2P of 32.9 USD/boe, well above its Ukraine-focused peers and at a 80% premium to CUB Energy (KOV CN), Kulczyk’s partner in its Ukrainian assets.
