Voya Asia Pacific High Dividend Equity Income Fund T.IAE

2014 Year End Results -The best that we could hope for!

[Naka2112]

"Finance & Operations Summary

• $182 million1 underlying cashflow from operations – $0.55 cashflow per share
• Production of 10,947 barrels of oil equivalent per day (“boepd”) in 2014 increasing to over 12,500 boepd in the first quarter of 2015 (“Q1-2015”), in line with 2015 full year guidance of 12,000 boepd
• 70 million barrels of oil equivalent (“MMboe”) proved and probable (“2P”) reserves at 31 December 2014, a 22% year on year increase – $1,744 million net asset value discounted at 10% (independently assessed by Sproule International Limited)
• Loss after tax of $25 million reflecting non-cash post-tax impairments of $173 million due to lower near term oil price assumptions
• Hedging gains of $175 million in 2014 – additional hedging taken out post year end to further strengthen future cashflows
• Operating costs reduced to under $40/boe in Q1-2015, with scope for further reductions
• Diversified debt capital structure established in 2014 through the issuance of $300 million five year unsecured senior notes
• Full funding to Stella first hydrocarbons forecast within existing $1,010 million finance facilities - in the process of extending the bank debt facilities to the third quarter 2018
• Peak net drawn debt prior to Stella start-up anticipated to be $850 million in Q2-2015 – $780 million forecast net drawn debt at 31 March 2015
• Stella development drilling programme close to completion, with encouraging data obtained from the final Ekofisk well ahead of the clean-up flow test in April 2015
• Strong alignment between all parties for delivery of Stella first hydrocarbons in Q2-2016"

"The Company is in the process of extending its RBL facility to a standard tenor that will better synchronise its duration with the revised Stella start-up schedule" 

"The corresponding post-tax net asset value discounted at 10% was $1,744 million, 5% higher than the previous year as the addition of the Summit Assets and portfolio changes more than offset the value realised from production in 2014 and the impact of the reduction in value associated with lower oil and gas price assumptions"

"The Company had a UK tax allowances pool of $1,496 million at 31 December 2014.  At current commodity prices, the pool is forecast to shelter the Company from the payment of corporation tax until after 2020"

"With the benefit of the additional hedges that have been executed since the start of the year, the Company now has a Brent breakeven price for the existing producing asset base of under $10/bbl until Stella start-up, in addition to having received an $80 million cash gain in Q1-2015"

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Very nice! The paper loss writedown is not that bad at all, and is offset by their very strong hedges. Moreover, their Reserves are up, they have enhanced their hedges and are currently extending their RBL to align with the Stella delay. Their Q1 2015 production (12,500 boe/d) is already exceeding their yearly production forecasts. 

GLTA