Premier Oil extends debt facilities, posts half-365 days loss

LONDON (Reuters) – Premier Oil has agreed phrases for a long-term refinancing of its debt facilities, it acknowledged on Thursday, including $300 million of most up-to-date equity and an extension to its credit score maturities, after swinging correct into a first-half loss as a consequence of old rude costs. The British firm has been combating debt on memoir of the oil traipse of 2014. The most up-to-date topple in rude costs as a consequence of the COVID-19 pandemic pressured the firm to exact all seemingly funds and lengthen repayments. Premier’s shares had been down 20% by 0852 GMT, the bottom since Might perchance well possibly 15. The firm acknowledged $2.9 billion of defective debt facilities would possibly well perchance be refinanced with non-amortising facilities, extending the maturities from Might perchance well possibly 2021 to March 2025. All interest charges on its debt would possibly well perchance be situation at 8.34%. Premier’s accumulate debt had reduced in dimension to $1.97 billion by the discontinue of June from $1.99 billion on the discontinue of December, the firm acknowledged. Premier’s market capitalization stood at round $414 million on Thursday. The firm confirmed it can perchance elevate $230 million to fund the proposed make a choice of some of BP’s North Sea fields. It acknowledged it can perchance also elevate a additional $300 million of most up-to-date equity to cut debt, of which $205 million shall be underwritten by collectors who will convert debt to shares. The new affiliation “locations us in a solid enlighten for long-term refinancing and to reset the steadiness sheet,” Premier Oil Chief Govt Tony Durrant told Reuters. “We are simultaneously increasing production and cash drift and lowering debt,” he added. The firm, which produced 67,300 barrels of oil the same per day in the principle half of 2020 in opposition to 84,100 boed a 365 days earlier, is planned to lift output to 100,000 boed by mid 2020 as a consequence of field open up-united statesand the BP acquisition, Durrant added. Premier reported a accumulate lack of $672 million in the principle half following $632 million in non-cash write downs, in opposition to a profit of $121 million in the principle half of 2019. The firm also reaffirmed its expectation that it’d be free cash drift sure for corpulent-365 days 2020. Reporting by Aby Jose Koilparambil and Pushkala Aripaka in Bengaluru; Making improvements to by Amy Caren Daniel and Jan Harvey

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