MP Nigeria: Final 2012 Consolidated Financial Statements

  MP Nigeria:Final 2012 Consolidated Financial Statements

Business Wire

PARIS -- April 30, 2013

Regulatory News:

MP Nigeria (Paris:MPNG):

During the meeting of the Board of Directors of 26 April 2013, the Directors
approved the audited final financial statements for MPN for the fiscal year
ended 31 December 2012. Consolidated net income, following the adjustment made
by SEPLAT relating to tax and deferred taxes, amounted to €51 million in
comparison to the previously approved figure of €48 million.

The audited final financial statements approved by the Board of Directors on
26 April 2013 will be available in the Annual Financial Report.

In millions of euros        31/12/2012  31/12/2011*
Sales                       0           0
Operating income            (2)         (2)
Financial income            5           10
Income before tax           3           9
Income tax                  (0)         (3)
Share of SEPLAT net income  48          12
Net income - Company share  51          18
                                      
Per share (€)               31/12/2012  31/12/2011*
Basic earnings per share    0.45        0.15
Diluted earnings per share  0.44        0.15
                                      
In millions of euros        31/12/2012  31/12/2011*
Cash and cash equivalents   182^1       178
Balance Sheet Total         297         259
                                       

*: the figures presented as at 31/12/2011 have been restated using the equity
method

^1 the cash and cash equivalents presented include an advance of US$98 million
granted to SEPLAT, repaid in January 2013.

Change in MPN’s consolidation method for SEPLAT

In order to make the financial information sent to shareholders easier to read
and analyse, the Group has opted, from fiscal year 2012 onwards, to
consolidate SEPLAT by the equity method, in accordance with the alternative
treatment authorised by IAS 31.

This change in method has no impact on MPN’s control over SEPLAT, which
remains a jointly controlled entity.

This decision leads the Group to reconstruct the financial data starting that
historic year using the equity method. This reconstruction ensures the
comparability of the financial statements due to the fact that the provisions
of IFRS11 comes into effect in 2014.

Pursuant to IAS 8 and 31, this change in method has now been applied
retrospectively by adjusting the Group’s financial statements for previous
fiscal years as if SEPLAT had been consolidated as an equity associate from
the outset.

Consequently and in accordance with this method, SEPLAT’s contribution to the
Group’s financial statements will now be recorded in the statement of
financial position under “Equity associates”, and in the comprehensive income
statement under “Share of income from equity associates”.

The key items in SEPLAT’s financial statements restated in accordance with
Group standards are disclosed in the notes to this document.

SEPLAT’S 2012 activities

Production of OMLs 4, 38 and 41 operated by SEPLAT continued to increase over
the whole of fiscal 2012 despite longer production interruptions than planned.
Production was partially or totally halted for 65 days in 2012 compared to
SEPLAT’s estimated 25 days of interruptions for maintenance of routing
facilities.

In addition, SEPLAT and SPDC signed an agreement in principle to reallocate
2,384,943 barrels in favour of the NPDC-SEPLAT joint undertaking, specifically
1,0055,224 barrels for SEPLAT for volumes produced up to the end of 2012. SPDC
had already made two initial adjustments (at 100%) of 297,133 and 440,000
barrels for activities prior to March 2012. Under the terms of this agreement,
a third adjustment of 1,647,810 barrels was made and the principle of a
maximum 8% discount on the production was negotiated.

Consequently, SEPLAT sales for fiscal year 2012 amounted to US$629 million, up
39% on 2011. This figure includes US$26 million in gas sales.

SEPLAT’s year-end well output target of 50,000 boepd was reached in January
2013.

The Okporhuru field, the first field to be developed by SEPLAT, is expected to
be connected during the first half of 2013 and enable well output to exceed
60,000 boepd by February 2013.

During the year, SEPLAT’s joint venture implemented a steady investment
programme required to meet its targets. Twelve production and injection wells
were drilled during the year at a cost of US$185 million, major workovers were
completed on nine wells for US$98 million, and US$44 million of commitments
were signed for investments for treatment facilities. These primarily relate
to the construction of a water-oil separation unit that is scheduled to become
operational during the second quarter of 2013 and which will maximise the
capacities for routing the oil produced whilst reducing the processing costs
charged by SPDC. They relate mainly to the construction of an oil/water
separation plant which should be commissioned in the second quarter of 2013
and will optimise oil routing while reducing the processing costs currently
invoiced by SPDC.

2013 objectives and strategy

The MPN Group’s objective is both to maximise its investment in SEPLAT by
supporting the development of production from OMLs 4, 38 and 41 and backing
SEPLAT in its decisions regarding acquisitions, while also grasping any
opportunities to diversify its asset portfolio.

SEPLAT’s objectives include achieving well output of around 65,000 boepd by
the end of 2013 (at 100%), and gas output in the order of 130 million cubic
feet of gas per day. SEPLAT is working to significantly increase its
processing capacities in order to enhance its gas assets.

SEPLAT is paying particular attention to external growth in Nigeria and to
setting up a dedicated team for this purpose.

At the same time, MP Nigeria’s teams are examining investment opportunities
outside Nigeria to allow it to diversity its assets.

Comments on SEPLAT’S 2012 financial statements

SEPLAT sales for fiscal 2012 amounted to US$629 million, an 39% increase in
relation to 2011.

Operating income of US$294 million is improving in line with production and
sales increases. It represents 47% of sales.

Financial expenses correspond to the interest expense on borrowing: a line of
credit and a shareholder loan granted by MPN.

Net book income amounted to US$138 million versus US$39 million in 2011.

At 31 December 2012, SEPLAT posted a cash position of US$112 million,
including a short-term advance received from MPN in the amount of US$98
million. This advance was reimbursed in January 2013.

Comments on MPN’S 2012 financial statements

The main aggregates of MP Nigeria’s financial statements are financial income
amounting to €4.4 million and the share of the equity associate SEPLAT’s
income, totalling €48 million.

Financial income includes €2.6 million paid on the US$47 million shareholder
advance paid to SEPLAT and €1.8 million in interest accruing from cash
investments made during the year.

At 31 December 2012, MP Nigeria posted a cash position of US$182 million
including an advance of US$98 million (€76 million) as part of the offer to
sell Conoco Phillips’ Nigerian assets. It was reimbursed in early 2013.

Statement of financial position

The financial statements approved by the Board of Directors on 26 April 2013
have been audited. They are available in the Annual Financial Report.

APPENDICES: INFORMATION TO ENSURE THE COMPARABILITY OF ONE FISCAL YEAR TO THE
NEXT

APPENDIX 1: SYNTHETIC MPN FINANCIAL ITEMS USING THE EQUITY METHOD

In € millions                        MPN
                                        
                                        MEE
Intangible assets
Property, plant and equipment
Other non-current assets                36
Equity associates (SEPLAT)              78*
Current assets                          78
Cash and cash equivalents               106
Total Assets                            297
                                        
Shareholders’ equity                    296
Liabilities                             1
Total Liabilities                       297
                                        
                                        
Sales                                   0
Income from continuing operations       3
Income from equity associates           48
Net income                              51
                                        

APPENDIX 2: SYNTHETIC SEPLAT ITEMS (IN US$ MILLIONS)*

In US$ millions                      SEPLAT
                                        100%
Intangible assets                       160
Property, plant and equipment           292
Other non-current assets                44
Equity associates
Current assets                        291
Cash and cash equivalents               112
Total Assets                            899
Shareholders’ equity                    228**
Liabilities                             671
Total Liabilities                       899
                                        
                                        
Sales                                   629
Income from continuing operations       267
Income from equity associates
Net income                              138
                                        

*: Financial statements restated in accordance with the accounting standards
of the MPN Group

**: €78 M (MPN-equity associates) = US$228 M (SEPLAT 100%) x 45% x €/US$ rate

APPENDIX 3: SYNTHETIC MPN FINANCIAL ITEMS USING THE PROPORTIONAL CONSOLIDATION
METHOD

In € millions                        MPN
                                        IP
Intangible assets                       54
Property, plant and equipment           99
Other non-current assets                51
Equity associates
Current assets                          177
Cash and cash equivalents               144
Total Assets                            526
Shareholders' equity                    296
Non-current liabilities                 98
Current liabilities                     132
Total Liabilities                       526

Sales                                   221
Income from continuing operations       96
Income from equity associates
Net income                              51
                                        

Company financial statements 2012

The company financial statements approved by the Board on 26 April 2013 show
net income of €10,128,554, generated primarily from dividends paid by SEPLAT
(€11.5 million), and financial income (€3 million) earned principally as
compensation for advances granted to SEPLAT.

                                     ***

PROPOSED DIVIDEND

On 27 March 2013, the Board of Directors approved the proposal to submit a
resolution to the General Shareholders’ Meeting relating to the payment of a
dividend of €0.08 per share.

                                     ***

CHANGE OF REGISTERED OFFICE

As the Company is a subtenant of Etablissements Maurel & Prom, the Board of
Directors’ meeting of 27 March 2013 approved, following the termination of the
main lease and the signing of a new lease agreement by Etablissements Maurel &
Prom, to submit to the General Shareholders’ Meeting the transfer of its
registered office to its new business address at 51, rue d’Anjou, Paris (8th
arrondissement).

CHANGE OF CORPORATE NAME

The Board of Directors’ meeting of 27 March 2013 approved in principle the
change of the corporate name of MP Nigeria to MPI.

                                     ***

About MP Nigeria

A société anonyme (public limited company) headquartered in Paris, MP Nigeria
is the result of the separation of Etablissements Maurel & Prom’s Nigerian
assets. MP Nigeria owns 45% of SEPLAT, a Nigerian oil and gas exploration and
production company that operates Nigerian Oil Mining Licenses 4, 38 and 41.
These oil licenses present a balanced combination of producing fields, fields
to be developed and exploration opportunities. Thanks to its association with
top-rank Nigerian partners, MP Nigeria benefits from strong local involvement
by both state authorities and local communities. On the strength of its assets
and this high-quality partnership, MP Nigeria is well positioned to ensure its
development and benefit from numerous growth opportunities. You can find more
information about the company on its website, www.mpnigeria.com.

                                     ***

For more information: www.mpnigeria.com

This document may contain forward looking statements about MP Nigeria's
financial position, income, activities and industrial strategy. By nature,
forward-looking statements contain risks and uncertainties to the extent that
they are based on events or circumstances that may or may not happen in the
future. These projections are based on assumptions we believe to be
reasonable, but which may prove to be incorrect and which depend on a number
of risk factors such as fluctuations in crude oil prices, changes in exchange
rates, uncertainties related to the valuation of our oil reserves, actual
rates of oil production and the related costs, operational problems, political
stability, legislative or regulatory reforms, or even wars, terrorism and
sabotage.

Contact:

PRESS CONTACTS, INVESTOR AND SHAREHOLDER RELATIONS
NewCap
Louis-Victor Delouvrier / Emmanuel Huynh, +33 1 44 71 94 94
mpng@newcap.fr
 
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