A steady performance in Q1

Last week Puma Energy, the global integrated midstream and downstream energy company, released its results for the first quarter of 2017.
“I am pleased to report that, despite facing headwinds in certain regions, we have had a steady start to the year, with a 3% increase in sales volume this quarter (compared to Q1 2016) and a gross profit of $407 million,” said CFO Denis Chazarain.
Key highlights

In US$ millions                Q1 2017Q1 2016
Sales volume (‘000 m3)5,4015,230
Throughput volume (‘000m3)4,6625,663
Gross profit407428
Cash flow from operating activities18203

“With the completion of several of our projects; capex was predominantly spent on storage construction and infrastructure projects, while a new terminal in Vietnam has increased storage capacity to 8.0million m³.
“The refinancing and extension of some tranches of our credit facilities announced post period end in May 2017 gives us comfort with the level of liquidity currently available to us as we start to reap the benefits of the established and well invested platform.
“Puma Energy remains in good shape and, with strict credit discipline and a focus on working capital management, we will continue to leverage our positions in our key markets and I look forward to a successful remainder of the year.”
Financial highlights

  • Business delivered a steady performance during the first quarter of 2017
  • Sales volumes grew by 3% to 5.4 million m3, thanks to good retail and aviation performance, whilst B2B still negatively affected by the slowdown of certain economies, particularly in Africa
  • Gross profit and EBITDA decreased compared to a very strong first quarter of 2016
  • Capex for the quarter decreased by 60% compared to last year as several major construction projects have been completed
  • Operating cash flow of US$ 18million was impacted by changes in working capital from the start-up of new activities in Myanmar, at Richard’s Bay in South Africa, and at the newly acquired terminal in Belfast; as well as timing effects on some transactions

Operational highlights

  • Downstream sales volumes increased, thanks to organic growth across most regions and good retail and aviation performance
  • 40 additional service stations were opened in Q1 2017, mainly in South Africa, Ghana, Guatemala and Australia. This brings the service station network to 2,559 sites
  • The Group’s storage capacity increased to 8.0million m³ thanks to the successful completion of Dinh Vu terminal in Vietnam and the integration of the terminal acquired from BP in Northern Ireland