Trinity, the independent E&P company focused on Trinidad and Tobago, announces its final results for the year ended 31 December 2021 ("the Period" or "FY 2021").
Trinity delivered another resilient performance in 2021. The Group is now positioned to leverage its cash and asset base to drive value and returns - with groundwork laid for near-term resumption of drilling, comprising a combination of high angle and horizontal as well as conventional low angle wells. This will be funded from existing cash resources and is the first phase of an ambitious growth strategy designed to maximise returns.
· Revenues of USD 66.2 million (2020: USD 44.1 million)
· Average production of 3,069 bopd (2020: 3,232 bopd)
· Average price per barrel received increased to USD 60.4/bbl (2020: USD 37.7/bbl)
· Adjusted EBITDA of USD 19.8 million (2020: USD 12.1 million)
· Operating Profit* of USD 10.0 million (2020: USD 3.0 million)
· Sixth consecutive year of sub USD30.0/bbl operating break-even with industry wide cost pressures increasing
· Cash generated from continuing operations USD 12.6 million (2020: USD 10.3million)
· Cash flow used in investing activities USD 13.9 million (2020: USD 6.0 million)
· Year end cash USD 18.3 million (2020: USD 20.2 million)
· New 25-year Galeota Licence, Crude Sales Agreement, Joint Operating Agreement, Conversion to 100% Working Interest
· Lease Operatorship Agreements renewed for 10 years on attractive terms
· PS-4 acquisition completed - further enhancing Trinity's contiguous acreage
* Before SPT, PT, Impairments and Exceptional Items
Positioned for Next Growth Phase
· Dynamic strategy for growth is underpinned by a strong balance sheet and resilient and dependable cash flow
· Focus on maximising value from existing assets and through acquisitions and partnerships
· Clearly defined, risk-mitigated strategy to drive returns for shareholders through value growth and the potential to return cash
· Strengthened Board
o Additions of Derek Hudson and Kaat Van Hecke further strengthening commercial, operational and wider industry skill sets
· Creation of Technical Committee
o Focused on risk-mitigation and assurance of opportunities which can increase scale and optimise returns
o Resumption of onshore drilling during H2 2022 is the first phase of this scaling up process
· Commenced planning for ambitious, risk-appropriate exploration programme
o To test the remaining material prospective onshore resources, using 3D seismic to map leads with potential to be fast-tracked to monetisation
o Exploring various options for the Galeota asset
Post Period Highlights
· Continued momentum into Q1 2022
o Q1 production levels resilient with volumes averaging 3,013 bopd (Q4 2021: 3,103 bopd). 2022 average production will be influenced by the timing and outcomes of the drilling campaign.
o Cash balance of USD 17.5 million as at 31 March 2022 (unaudited) (USD 18.3 million as at 31 December 2021)
o Average realisation of USD 83.1/bbl for Q1 (Q1 2021: USD 52.3/bbl)
o 2022 average production will be influenced by the timing and outcomes of the drilling campaign
A briefing for Analysts will be held at 14.00 today both in person -- with Chairman Nicholas Clayton and Chief Executive Officer Jeremy Bridglalsingh and via web conference for those who are unable to attend. Analysts wishing to join should contact firstname.lastname@example.org.
The Company will be hosting a presentation through the digital platform Investor Meet Company at 16.00 today. Management will discuss results and the imminent drilling programme as well as longer-term opportunities. An updated investor slide deck will be added to the Company's website later today.
Investors can sign up to Investor Meet Company for free and add to meet Trinity Exploration via the following link https://www.investormeetcompany.com/trinity-exploration-production-plc/register-investor
Jeremy Bridglalsingh, CEO of Trinity, commented: "We are delighted with the Company's performance during 2021 and look forward with confidence. The reinforced technical guidance for the upcoming drilling programme points towards the potential for this to be an inflection point for the Company as we commence the next stage of our growth, and we very much look forward to updating the market with further developments in due course.
"Our ambition is to double production over the next few years, and thereby generate sufficient free cash flow both to fund future growth initiatives and deliver meaningful cash returns for shareholders, and we believe that we now have the structure in place to deliver this challenging target."