Ronald Pantin, the CEO and Director of PACIFIC RUBIALES EGY (OTCMKTS:PEGFF) discussed the financial performance and company’s plans to reduce the adverse impact of lower prices in 2015 during results conference. He said that FY2014 was a good year for the company but with the sharp decline in oil prices in 4Q, the company recorded WTI $73 per barrel. The average for FY2014 was $92.91 per barrel.
The production in 4Q2014 was more than 147,000 Boe net to the company and for FY2014 average was 147,423. Despite the decline in oil prices, the revenue came at a record of approximately $5 billion in FY2014. The revenue for the quarter was almost $1 billion. Pacific Rubiales reported EBITDA in 4Q at $419million and for fiscal year at approximately $2.5 billion.
The financial performance
PACIFIC RUBIALES EGY (OTCMKTS:PEGFF) reported that funds flow from operations hold significant importance for the company. It posted $2 billion of funds from operation for FY2014 and $410 million for 4Q. It excelled on the front of combined operating net backs that came nearly $55 per barrel of oil equivalent in FY2014. In the quarter it was at $38 per barrel of oil equivalent.
Pacific Rubiales was able to mitigate costs considerably as for 4Q it had $27 for the production, as well as transportation and dilution. It reported operating cost of $30.51for the full year. The reserves declined by $54 million barrels to $511 million barrels due to increase in additional store operation. The company sold 36% stake in Pacific Midstream for $240 million.
The future plans
Pacific Rubiales intends to reduce the impact of declining oil prices by reducing the total cost of production. The company reported 23% decline in shipment costs to $11.69 from $15.12 in last year. It will take significant measures to reduce transportation costs. Also, the company will invest just 6% so as to reduce the dilution cost in the year.