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Puma Energy announces Q3 2020 results

19 Nov 2020

Singapore, 19 November 2020  – Puma Energy today announced its third quarter financial results for the three-month period ended 30 September 2020.

  • Steady recovery of sales volumes and unit margins
  • EBITDA broadly in line with prior quarter and increased YoY
  • Decisive management of opex and capex while markets adjust to COVID-19 restrictions

Singapore, 19 November 2020 – Puma Energy today announced its third quarter financial results for the three-month period ended 30 September 2020.

Key Performance Indicators (000 US$)* 

*NB All financial figures are presented excluding the impact of IFRS16

** On an unadjusted perimeter basis, therefore not accounting for the divestment of Australia fuels and Paraguay

Financial Highlights

  • Achieved EBITDA of US$148 million, broadly in line with the second quarter which included US$82 million of core shareholder-supplier price adjustment support
  • No further core shareholder-supplier price adjustment support received during the third quarter
  • EBITDA growth driven by unit margin improvement, operational initiatives and cost reductions
  • Loss for the period mainly driven by impairments of US$236 million
  • Balanced approach to the reduction of gross debt in line with previous commitments. Prepaid US$300 million of the three-year term loan so far during 2020, including US$100 million in November 2020

 

Strategic and Operational Highlights

  • Continued to safely deliver essential services to customers throughout second wave of COVID-19 restrictions
  • Sales volumes broadly recovered with the exception of Aviation, supported by the easing of hard lockdowns in most markets and associated increases in economic activity and local transportation
  • Unit margins increased relative to prior year, reflecting a focus on higher-margin customer-facing segments, and benefiting from a refining settlement in third quarter
  • Delivered operational improvements of US$21 million in the quarter by increasing the benefits captured from existing initiatives, bringing a total benefit year-to-date of US$59 million
  • Continued commitment to non-core asset disposals of US$100 million by the end of 2020, further simplifying the business by focusing on core growth segments and priority markets

 

Commenting on the results, Emma FitzGerald, CEO, said:

“I am pleased to report that Puma Energy continues to demonstrate its resilience as a global energy business despite ongoing uncertainty and varying levels of COVID-19 restrictions across our key markets. With the exception of Aviation, our sales volumes remain relatively stable on an adjusted perimeter basis, and we continue to see further signs of recovery in unit margins, with no core shareholder-supplier price adjustment support received during the quarter.

 “Our encouraging results reflect the sustained efforts of the Puma Energy team to deliver reliable, affordable and high-quality energy solutions for our customers worldwide. I am immensely proud of the strength we have demonstrated during our recovery, and am confident that our customer-led strategy, operational improvements and ongoing cost-management measures will continue to drive growth. Subject to impacts from the second wave of COVID-19, our guidance remains that full year EBITDA for 2020 will be broadly similar to the levels reported in 2019.”

Financial Overview

The Company achieved Q3 Earnings Before Income Tax Depreciation and Amortisation (EBITDA) of US$148 million, broadly in line with the previous quarter and a 14% increase compared to the third quarter of 2019. As travel related restrictions have eased in certain regions during the quarter, demand has progressively improved, with Aviation recovering more slowly.

The Company’s operating cash flow was positive at US$61 million for the quarter. An improvement compared to the prior quarter and the same quarter last year.

The Company’s balanced approach to managing its liquidity and reducing gross debt continued in line with previous commitments. In November it pre-paid a further US$100 million of the three-year term loan due to mature in the second quarter 2021, further taking total prepayments on this loan to US$300 million in 2020.

The Company has continued to actively manage costs and capital expenditure while markets adjust to the fluctuating impacts of COVID-19. Additionally, the business has continued to focus on sustainable growth in our priority markets and remains committed to US$100 million of non-core asset disposals by the end of 2020.

Impairments of US$236 million in the third quarter are the result of the Company’s regular review of the carrying value of its assets, with the two largest adjustments made for Puerto Rico and Ghana, triggered by standard impairment testing.

Strategic and Operational Overview

The Company has continued to focus on operational excellence and accelerating the execution of its customer-led strategy to safely deliver essential services and reliable energy solutions to customers worldwide. The reorganisation of Puma Energy into three core business units (Downstream, Infrastructure and Future Energies) has also helped to bring more focus to key operating areas. 

Overall sales volumes for the quarter have recovered to around 5 million cubic meters. Aviation sales were impacted most significantly by the first wave of COVID-19 restrictions and are recovering, but remain weak compared to historic volumes. Adjusting for Aviation, sales volumes for the quarter would be 7% below the same quarter of last year on a comparable perimeter.

Outlook

As reported at the Company’s Half Year financial results, subject to the potential unforeseen impacts resulting from a material second wave of COVID-19, the expectation for Puma Energy’s EBITDA for 2020 is broadly similar to the 2019 reported levels, taking into consideration the reduced perimeter due to the divestment of the Australian fuels business and Paraguay.

 

- ENDS -

  

For press queries, please contact:

FTI Consulting

Genevieve Ryan | Christopher Laing

Tel: +44 (0) 20 3727 1000

Email: pumaenergy@fticonsulting.com

 

For investor queries, please contact:

investors@pumaenergy.com

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 across six continents. Puma Energy has around 2600 retail sites, a presence at over 80 airports and a network of 91 storage terminals. Our purpose is energising 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

Cautionary Statement

This announcement is not being made in and copies of it may not be distributed or sent into any jurisdiction where distribution would be unlawful.

Forward-looking statements

Some of the information included in this announcement contain forward-looking statements. You can identify these forward-looking statements by use of words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “will,” “estimates,” “intends,” “projects,” “goals,” “objectives,” “guidance,” “targets,” “forecasts” or “could”, the negative of such terms and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. Although Puma Energy believes that the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Puma Energy or any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Puma Energy or any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement.

 

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