The Press and Journal (Inverness, Highlands, and Islands)
Lower debt good news for Premier
Premier Oil’s debt reduction drive exceeded expectations in 2018, buoyed by record annual production. The London-headquartered firm trimmed its net debt by £300 million to £1.8 billion at the end of last year, below its previous guidance of £1.88bn.
Full-year production totalled 80,500 barrels of oil equivalent per day (boepd), up 7% on 2017. In its half-year results package in August, the company set its 2018 production guidance range at 8085,000 boepd. Output averaged 92,000 boepd in November and December, and Premier’s Catcher FPSO in the central North Sea is producing at increased oil rates of 66,000 boepd.
Other highlights from last year included approval of the Tolmount gas development in the southern North Sea. Another appraisal well at
“Our priority remains to further reduce our debt levels”
the site is scheduled for the middle of this year.
Capital expenditure totalled £275m, while Opex came to $16.9 per barrel, both below guidance.
Premier chief executive Tony Durrant said: “Our strong operational performance and disciplined expenditure have enabled us to reduce our debt levels ahead of forecast. We have continued to build our portfolio for the future, sanctioning our high value Tolmount Main gas project and capturing highly prospective new acreage in Mexico and Indonesia.
“Looking to the year ahead, we have a strong production base which is well hedged and our priority remains to further reduce our debt levels while progressing our future growth projects to final investment decisions.” Former regional banking chief John Brebner has taken up a new role at Aberdeenshire firm Motive Offshore.
Mr Brebner had a string of senior management roles during a 34-year career at Clydesdale Bank, including a spell as area director for north Scotland.
He has joined Motive, a marine equipment specialist based in Boyndie, between Banff and Portsoy, as finance director to support its plans to build on record turnover in 2018.
At risk of closure a few years ago, at the height of the oil downturn, Motive’s bosses have restructured the firm and given it a more financially secure footing.
Accounts are still being finalised but turnover exceeded £13 million last year and beat management’s expectations for a 20% increase on 2017.
The company, which employs 94 people at its base in Boyndie and an office in Dyce, Aberdeen, and has a presence in key oil and gas centres overseas, plans to go on the acquisition trail in 2019.
Managing director Dave Acton, who co-founded the business with James Gregg, said: “John brings a lifetime of corporate finance experience which will be invaluable as
“I was very keen to become more involved and support them”
a move into the next stage of company growth.
“His expertise is the final piece that was missing to allow us to forge ahead with our expansion and acquisition new year.”
Mr Brebner, who has been a non-executive director on Motive’s board since February last year, said: I have known James and Dave for a number of years and, although they have seen some tough times, I was hugely impressed with how they came through the other side.
“I was very keen to become more involved and support them as the business is poised for further success.
“Motive is hungry for growth, so we will actively plans for the