Puma Energy announces full year 2019 results - in line with guidance
05 Mar 2020
Singapore, 5 March 2020 – Puma Energy today announced its financial results for the year ended 31 December 2019.
Puma Energy has delivered on all of its stated strategic commitments during 2019 and achieved full year earnings before income, tax, depreciation and amortisation (EBITDA) of US$530 million, in line with Company guidance.
Puma Energy’s customer-focused approach enabled in excess of US$24 million of operational improvements during the year to manage material external headwinds in a number of markets and stabilise business performance. US$10 million of the operational improvements were achieved during the fourth quarter, demonstrating improving momentum. Operating cash flow for the full year was US$629 million, demonstrating robust EBITDA to cash conversion.
During 2019 Puma Energy sold its Paraguay and Australian fuels businesses. The sale of the Paraguay assets closed at the end of January 2020 and the sale of the Australian fuels business is on track for completion at the end of the second quarter 2020. The proceeds will be used to pay down Puma Energy’s debt, in line with the Company’s stated commitment to deleverage the balance sheet. At year-end 2019, the Company’s leverage was 2.5x – versus 3.2x at the end of the third quarter of 2019 – which together with strong operational cash flow, also benefited from a short-term uplift in crude oil pricing at the end of the fourth quarter.
The combination of sales proceeds and improved strong operational cash flow from the execution of the customer-led strategy; together with careful prioritisation of capital expenditure in those markets where we can drive growth - means that the Company is confident that leverage will fall below 2.5x by the end of 2020 - as previously stated.
The process of financial and operational stabilisation undertaken during 2019 has ensured Puma Energy is now well positioned to both capture the opportunities presented by the global energy transition and mitigate uncertainty in its key markets. The Company expects to continue to deliver improved financial performance during 2020 as it accelerates the execution of its strategy in pursuit of sustainable and profitable growth.
Commenting on the results, Emma FitzGerald, CEO, said:
“We have made solid progress across the business in 2019, and at the same time significantly improved our safety performance. Our customer-focused mindset and strategy-driven operational improvements helped us respond to challenging market conditions. We signed contracts to sell our businesses in Paraguay and Australia, in line with our stated commitment to deleverage our balance sheet by the end of 2020.
Now our focus is on accelerating the execution of our strategy, optimising our portfolio to reduce complexity and risk, leading to sustainable profitable growth.
The appointment of a new Chair and a strengthened senior Management team, as well as the restructuring of our shareholding post-period, underlines our commitment to both corporate governance and business execution.
I believe Puma Energy is now very well placed to respond to our customers’ evolving needs and play its part in the fast-moving energy transition. We look forward to sharing more detail with our investors on the Company’s anticipated ‘New Ventures’ business activity during the course of 2020.”
- ENDS -
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Further information can be located at: https://www.pumaenergy.com/en/investor-relations/home/
About Puma Energy
Puma Energy is a leading global energy business with a customer-focused approach to safely providing energy solutions in 46 countries across six continents. Puma Energy has around 3,000 retail sites, a presence at over 80 airports and a network of 100 storage terminals. Our purpose is to energise communities to help drive growth and prosperity by sustainably serving our customers’ needs in high potential countries around the world.
For further information visit: www.pumaenergy.com
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