Final results for the half year ended
Summary performance
30 June 2017 | |
NAV | $1,668 million |
NAV per share | $19.74 / £15.161 |
Profit/(loss) during period | $(30.6) million |
Basic profit/(loss) per share during period | (36.17) cents |
Market Capitalisation | £1,060 million / $1,381 million1 |
Share price | £12.55 / $16.351 |
Highlights
§ As of
§ The decline in NAV was primarily driven by REL's second largest investment, Centennial, which is publicly traded and saw its shares share price decline from
§ The Company invested a total of
§ During the first half of 2017, REL reduced commitments to two companies, totaling
Commitments and Investments
During the year, the company made the following investments:
§ Invested
§ Invested
§ Invested
§ Invested
§ Invested
§ Invested
During the year, the Company reduced the following commitments:
§ Commitment reduction of
§ Commitment reduction of
Manager Outlook
§ Global oil market volatility is likely to remain elevated as the market seeks equilibrium.
§ The Investment Manager believes that energy producers in low-cost basins with an oil-weighting will continue to outperform.
§ North American energy investments retain an advantage in a global marketplace due to low breakeven costs, short cycle times and high asset liquidity.
§ The portfolio's 14 active investments as a whole are well placed to offer investors resilience and growth in a variety of commodity price environments.
"Today's results demonstrate REL's resilience as oil price volatility resumed in the first half of 2017. Despite a 14 per cent decline in the price of West Texas Intermediate, the net asset value declined by 1.8 per cent, reflecting continued operational successes and the portfolio's emphasis on low-cost basins."
"Riverstone continues to leverage its expertise across the energy value chain and capital structure to identify profitable opportunities for REL and its investors. The successes highlighted in today's results, such as Meritage III's confirmed expansion in Western Canadian midstream infrastructure and Sierra's recent historic oil discovery offshore
- Ends -
The Investment Manager will host a conference call with investors at
Dial-in (
Dial-in (Intl.): +44 (0) 203 107 0289
Conference ID: 59166774
2Q17 Quarterly Portfolio Valuation
Previously, on
Current Portfolio
Target Basin | Gross Committed Capital ($mm) | Invested Capital ($mm) | Realised Capital ($mm)3 |
Net Invested Capital ($mm)4 | Gross Realised & Unrealised Value ($mm)5 | Gross MOIC5 | ||
CIOC | Deep Basin (Canada) | $307 | $295 | $23 | $275 | $533 | 1.8x | |
Centennial | Permian (U.S.) | 268 | 268 | - | 268 | 380 | 1.4x | |
Three Rivers III | Permian (U.S.) | 167 | 86 | - | 86 | 259 | 3.0x | |
Liberty II | Bakken, PRB (U.S.) | 142 | 137 | - | 137 | 171 | 1.3x | |
Carrier II | Permian (U.S.) | 133 | 110 | - | 110 | 131 | 1.2x | |
ILX III | Deepwater GoM (U.S.) | 200 | 94 | - | 94 | 122 | 1.3x | |
RCO6 | North America | 125 | 87 | 81 | 24 | 109 | 1.3x | |
CNOR | Western Canada | 90 | 80 | - | 80 | 80 | 1.0x | |
Eagle II | Mid-Continent (U.S.) | 67 | 62 | - | 62 | 68 | 1.1x | |
Meritage III7 | Western Canada | 67 | 32 | - | 32 | 45 | 1.4x | |
Castex 2014 | Gulf Coast Region (U.S.) | 67 | 40 | - | 40 | 40 | 1.0x | |
Fieldwood | GoM Shelf (U.S.) | 82 | 58 | 3 | 58 | 35 | 0.6x | |
Castex 2005 | Gulf Coast Region (U.S.) | 50 | 48 | - | 48 | 5 | 0.1x | |
Sierra | Mexico | 38 | 1 | - | 1 | 2 | 1.1x | |
Total Current Portfolio8 | $1,802 | $1,398 | $107 | $1,314 | $1,979 | 1.4x | ||
Percentage of REL net capital available9 | 91% |
Realisations
Target Basin | Gross Committed Capital ($mm) | Invested Capital ($mm) | Realised Capital ($mm)3 |
Unrealised Value ($mm) | Gross Realised & Unrealised Value ($mm)5 | Gross MOIC5 |
| ||
Rock Oil10 | Permian (U.S.) | - | 114 | 216 | 24 | 240 | 2.1x |
| |
CanEra III | Western Canada | - | 1 | 1 | - | 1 | 0.4x | ||
Origo | North Sea (Norway, U.K.) | - | 9 | - | - | - | 0.0x | ||
Total Investments8 | $1,523 | $323 | $2,220 | 1.5x |
|
About
REL is a closed-ended investment company that invests exclusively in the global energy industry, with a particular focus on the exploration & production and midstream sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform. REL is a member of the FTSE 250 and its ordinary shares are listed on the
For further details, see www.RiverstoneREL.com
Neither the contents of REL's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.
Media Contacts
For
+44 20 3206 6300
Note:
The Investment Manager is charged with proposing the valuation of the assets held by REL through the Partnership. The Partnership has directed that securities and instruments be valued at their fair value. REL's valuation policy follows IFRS and IPEV Valuation Guidelines. The Investment Manager values each underlying investment in accordance with the Riverstone valuation policy, the IFRS accounting standards and IPEV Valuation Guidelines. The Investment Manager has applied Riverstone's valuation policy consistently quarter to quarter since inception. The value of REL's portion of that investment is derived by multiplying its ownership percentage by the value of the underlying investment. If there is any divergence between the Riverstone valuation policy and REL's valuation policy, the Partnership's proportion of the total holding will follow REL's valuation policy. There were no valuation adjustments recorded by REL as a result of differences in IFRS and U.S. Generally Accepted Accounting Policies for the period ended
Riverstone values its investments using common industry valuation techniques, including comparable public market valuation, comparable merger and acquisition transaction valuation, and discounted cash flow valuation.
For development-type investments, Riverstone also considers the recognition of appreciation or depreciation of subsequent financing rounds, if any. For those early stage privately held companies where there are other indicators of a decline in the value of the investment, Riverstone will value the investment accordingly even in the absence of a subsequent financing round.
Riverstone reviews the valuations on a quarterly basis with the assistance of the Riverstone valuation committee as part of the valuation process.
The Audit Committee reviews the valuations of the Company's investments held through the Partnership, and makes a recommendation to the Board for formal consideration and acceptance.
1 GBP:USD Fx rate of 1.303 as of
2 Based on total capital raised of
not expect to fully fund all commitments in the normal course of business.
3 Realised capital is total gross proceeds realised on invested capital. Of the
4 Net invested capital is total invested capital less cost basis of the realised capital.
5 Gross MOIC is Multiple of
6 Credit investment.
7 Midstream investment.
8 Amounts may vary due to rounding.
9 Based on total capital raised of
10 The unrealised value of the Rock Oil investment consists of sale proceeds in escrow of
This information is provided by RNS