Webcast – Mike Nicholson and Christophe Nerguararian comment on the Q1 2021 results

Webcast: Mike Nicholson and Christophe Nerguararian comment on the Q1 2021 results

May 5, 2021

Watch Mike Nicholson, CEO, and Christophe Nerguararian, CFO, commenting on the report and the latest developments from IPC – Wednesday, May 5, 2021 at 09:00 CEST.

 

Webcast link: https://edge.media-server.com/mmc/p/pvvirun6

You can also dial-in to listen to the presentation on the following telephone numbers:
Canada/International: +1 631 913 1422
UK:+44 333 300 0804
Sweden: +46 85 664 2651
The PIN code for the dial-in presentation is:   49205683#

IPC First Quarter 2021 Financial Results

IPC First Quarter 2021 Financial Results

IPC First Quarter 2021 Financial Results

May 5, 2021


International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operating results and related management’s discussion and analysis (MD&A) for the three months ended March 31, 2021.

Q1 2021 Financial and Operational Highlights
Average net production of approximately 43,700 barrels of oil equivalent (boe) per day (boepd) for the first quarter of 2021 (44% heavy crude oil, 19% light and medium crude oil and 37% natural gas)(1).
Average net production is above the high end of the 2021 Capital Markets Day (CMD) guidance range for the first quarter of 2021, with exceptional operational performance and high uptimes recorded across IPC’s portfolio.
Full year 2021 average net production is expected to be towards the high end of the forecast 41,000 to 43,000 boepd range(1).
Operating costs(2) per boe of USD 14.4 for the first quarter of 2021, in line with CMD guidance.
Capital and decommissioning expenditures of MUSD 12.0 for the first quarter of 2021, in line with CMD guidance.
Exceptionally strong free cash flow (FCF)(2) generation of MUSD 49 for the first quarter of 2021, representing close to 10% of IPC’s market capitalization as at March 31, 2021.
Increased working interest in the Bertam field, Malaysia to 100% from April 10, 2021.
Production sustaining Pad D’ at Onion Lake Thermal, Canada is on budget and scheduled to come on-line during the second quarter of 2021.
Proved plus probable (2P) reserves as at December 31, 2020 of 272 million boe (MMboe), with a reserves life index of 18 years(1).
Contingent resources (best estimate, unrisked) as at December 31, 2020 of 1,102 MMboe(1).
Forecast cumulative FCF(2) for 2021 to 2025 of approximately MUSD 600 to MUSD 900, generating estimated average annual free cash flow yield over the five year period of between 24% and 36%(3).
Operating cash flow (OCF)(2) generation for the first quarter of 2021 amounted to MUSD 68, above the higher end of the CMD guidance.
Net debt(2) of MUSD 286 as at March 31, 2021.
Net result of MUSD 27 for the first quarter of 2021.
Three months ended March 31
USD Thousands20212020
Revenue134,28480,536
Gross profit / (loss)37,930(12,436)
Net result26,891(40,069)
Operating cash flow(2)67,72121,481
Free cash flow(2)48,951(42,712)
EBITDA(2)66,26319,009
Net Debt(2)286,132302,473

Note:
(1) See “Supplemental Information regarding Product Types” below and the Corporation’s annual information form for the year ended December 31, 2020 (AIF), available on the SEDAR website (www.sedar.com) or IPC’s website (www.international-petroleum.com).
(2) See “Non-IFRS Measures” below.
(3) Assumptions described in IPC’s press release of February 9, 2021, available on the SEDAR website (www.sedar.com) or IPC’s website (www.international-petroleum.com). Free cash flow yield based on IPC market capitalization at March 31, 2021 (28.3 SEK/share, 8.7 SEK/USD, 505 MUSD). See “Forward-Looking Statements” below.

Mike Nicholson, IPC’s Chief Executive Officer, commented,
“Market conditions for oil and gas producers have continued to improve during the first months of 2021. First quarter 2021 average Brent oil prices were above USD 60 per barrel, well in excess of fourth quarter 2020 prices that averaged around USD 45 per barrel.

Proactive supply management by the OPEC+ group, led by Saudi Arabia, is allowing the market rebalancing process to continue. The International Energy Agency (IEA) is now forecasting a net supply deficit in every quarter through 2021 which should set the scene for inventories to return back to longer term norms.

The pace of recovery in oil demand will be dependent on the continued roll out of the Covid-19 vaccination program to the wider population and the easing of restrictions on mobility. For a sustained recovery in oil prices, discipline and compliance on the supply side measures announced by OPEC+ enters a crucial phase, particularly when considering the timing of easing of the supply curtailments as demand recovers.

In Canada, first quarter 2021 Western Canadian Select (WCS) crude price differentials averaged below USD 13 per barrel and forward markets into 2022 and 2023 are pricing at around similar levels. Clearly the positive construction progress on both Enbridge’s Line 3 replacement as well as the TransMountain pipeline expansion project is providing a much more constructive outlook for Canadian oil market egress relative to the tightness we have witnessed over the past five years or so. IPC has positioned itself well to benefit from this.

Notwithstanding these positive tailwinds, we believe it is prudent to remain cautious with respect to our expenditure plans and therefore we are retaining our limited 2021 expenditure program. We are therefore well placed to deliver on our promise to generate strong free cash flow and to deleverage as we move through 2021.

That being said, the massive collapse in investment in our sector combined with the redirection of future capital investment away from upstream oil and gas in favour of renewable energy by the majors presents a huge opportunity for companies like IPC. We retain our opportunistic approach with respect to further Mergers and Acquisitions (M&A) activity and we have witnessed an uptick in market activity levels that we anticipate will continue in the months ahead.

First Quarter 2021 Highlights
During the first quarter of 2021, our assets delivered average net production of 43,700 boepd. This sits above the top end of our CMD guidance range for the first quarter and was largely driven by a combination of very high uptime performance across all assets as well as a lower than forecast cold weather impact on our Canadian gas production. As a result of strong start to 2021, we expect full year net average production to be towards the high end of our forecast 41,000 to 43,000 boepd range. Our operating costs per boe for the first quarter of 2021 was USD 14.4, in line with CMD guidance.

Operating cash flow generation for the first quarter of 2021 amounted to MUSD 68, stronger than our CMD high case (Brent USD 65 per barrel) forecast as a result of stronger than forecast production, tighter Canadian crude price differentials and stronger realized Canadian gas prices.

Capital and decommissioning expenditures during the first quarter of 2021 of MUSD 12.0 was in line with forecast, representing approximately one third of our full year forecast expenditure program of MUSD 37.

During the first quarter of 2021, free cash flow generation was exceptionally strong at MUSD 49 which represents close to 10% of IPC’s market capitalization as at March 31, 2021.

Net debt was reduced during the first quarter of 2021 by MUSD 35 to MUSD 286. Net debt to EBITDA drops to 1.8 times as at March 31, 2021 from 3 times as at December 31, 2020 (based on the trailing 12 months’ EBITDA) or to 1.1 times as at March 31, 2021 (based on an annualized Q1 2021 EBITDA).

Acquisition of additional Bertam interest in Malaysia
During April 2021, we were very pleased to acquire an additional 25% interest in the Bertam field on the withdrawal of our partner Petronas Carigali, taking IPC’s interest in the field to 100% effective from April 10, 2021. No consideration was paid by IPC for this additional interest and IPC agreed to assume minimal further future well decommissioning obligations estimated at around MUSD 1.0. Current net Bertam field production acquired is in excess of 1,250 bopd. Our commercial interest in the Bertam FPSO remains unchanged at 100%.

Environmental, Social and Governance (ESG) Performance
Health, Safety & Environmental performance remains a priority for all operational assets. Our objective is to reduce risk and eliminate hazards to prevent the occurrence of accidents, ill health and environmental damage, as these are essential to the success of our operations. During the first quarter of 2021, IPC recorded no material safety or environmental incidents.

In response to the Covid-19 pandemic, we remain focused on protecting the health and safety of our employees, contractors and other stakeholders, while also working to ensure business continuity. In the first quarter of 2021, IPC continued the health protocols implemented throughout the organization.”

 

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Q1 2021 MD&A (regulatory)
05.05.2021, 312 KB

IPC announces 2021 Annual General Meeting voting results

IPC announces 2021 Annual General Meeting voting results

IPC announces 2021 Annual General Meeting voting results

May 4, 2021

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) is pleased to announce the voting results from the Corporation’s 2021 Annual General Meeting of Shareholders held on May 4, 2021 in Calgary, Alberta.

Number of Directors
The number of Directors of the Corporation was set at seven.

Votes For% ForVotes Against% Against
54,357,17399.99%7,4930.01%

Election of Directors
The seven nominees listed in the Corporation’s management information circular dated March 26, 2021 (the Circular) were elected as Directors of the Corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed, unless the office is earlier vacated, as described in the Circular.

NomineeVotes For% ForVotes Withheld% Withheld
C. Ashley Heppenstall54,322,78599.92%41,8810.08%
Mike Nicholson54,354,22799.98%10,4390.02%
Donald K. Charter54,345,27199.96%19,3950.04%
Chris Bruijnzeels54,328,10599.93%36,5610.07%
Torstein Sanness54,319,66899.92%44,9980.08%
Lukas H. (Harry) Lundin54,357,64999.99%7,0170.01%
Emily Moore54,356,69099.99%7,9760.01%

Appointment of Auditor
PricewaterhouseCoopers SA was appointed as auditor of the Corporation until the next annual general meeting of shareholders and the Directors of the Corporation were authorized to fix the auditor’s remuneration.

Votes For% ForVotes Withheld% Withheld
54,635,04299.99%3,6730.01%

Share Unit Plan Amendments
The resolutions approving amendments to the Corporation’s Share Unit Plan and related matters, as described in the Circular, were approved.

Votes For% ForVotes Withheld% Withheld
54,267,00399.32%371,7110.68%

 

IPC to release First Quarter 2021 Financial Results on May 5, 2021

IPC to release First Quarter 2021 Financial Results on May 5, 2021

IPC to release First Quarter 2021 Financial Results on May 5, 2021

April 29, 2021

International Petroleum Corporation (IPC) (TSX, Nasdaq Stockholm: IPCO) will publish its financial and operating results and related management’s discussion and analysis for the three months ended March 31, 2021, on Wednesday, May 5, 2021 at 07:30 CET, followed by a webcast at 09:00 CET.

Watch Mike Nicholson, CEO, and Christophe Nerguararian, CFO, commenting on the first quarter 2021 financial and operating results and the latest developments from IPC.

Follow the presentation live on www.international-petroleum.com.

You can also dial-in to listen to the presentation on the following telephone numbers:
Canada/International: +1 631 913 1422
UK:+44 333 300 0804
Sweden: +46 85 664 2651
The PIN code for the dial-in presentation is:   49205683#

IPC Annual General Meeting to be held on May 4, 2021

IPC Annual General Meeting to be held on May 4, 2021

IPC Annual General Meeting to be held on May 4, 2021

March 30, 2021

International Petroleum Corporation (“IPC” or the “Corporation”) (TSX, Nasdaq Stockholm: IPCO) is pleased to announce that its Annual General Meeting of Shareholders will be held at the offices of Blake, Cassels and Graydon LLP, Suite 3500, 855 – 2nd Street S.W., Calgary, Alberta, Canada T2P 4J8 on Tuesday, May 4, 2021 at 8:00 a.m. (Mountain time), for the following purposes:

  1. To receive the audited consolidated financial statements of the Corporation for the financial year ended December 31, 2020 and accompanying report of the auditor, and the management’s discussion and analysis of the Corporation for the year ended December 31, 2020;
  2. To set the number of directors of the Corporation at seven;
  3. To elect the seven nominees of the Corporation standing for election as directors of the Corporation to hold office until the next annual meeting of Shareholders or until his or her successor is duly elected or appointed;
  4. To appoint PricewaterhouseCoopers SA, as the auditor of the Corporation, to hold office until the next annual general meeting of Shareholders and to authorize the directors to fix the auditor’s remuneration;
  5. To consider and, if deemed advisable, to approve, with or without variation, an ordinary resolution approving an increase to the maximum number of common shares of the Corporation that may be issued under the Corporation’s share unit plan, as more particularly described in the Management Information Circular dated March 26, 2021 (the “Information Circular”); and
  6. To transact such other business as may properly come before the Meeting or any adjournment or postponement thereof.

The record date for the Annual General Meeting is March 19, 2021. The Notice of Meeting, the Information Circular and related Meeting materials, and the Corporation’s Annual Information Form for the year ended December 31, 2020, are available under the Corporation’s profile on SEDAR at www.sedar.com and on the Corporation’s website at www.international-petroleum.com.

Due to the public health restrictions related to the Covid-19 virus and taking into account the health and safety of our employees, shareholders, service providers and other stakeholders, the Meeting will only be open to registered Shareholders and duly appointed proxy holders. Further restrictions with regard to the Meeting may be implemented by the Corporation as required in accordance with applicable law. Shareholders are requested to vote by proxy, by mail, by telephone or on the Internet, in advance of the deadline set forth in the Information Circular. The Corporation is not aware of any items of business to be brought before the Meeting other than those described in the Information Circular and there will be no management presentation on the business and operations of the Corporation at the Meeting.

Advice to Holders of Euroclear Sweden Registered Common Shares
Shareholders who hold their common shares (“Euroclear Registered Common Shares”) through Euroclear Sweden AB, which common shares trade on the NASDAQ Stockholm, are not registered holders of common shares for the purposes of voting at the Meeting. Instead, Euroclear Registered Common Shares are registered under CDS & Co., the registration name of the Canadian Depositary for Securities. Holders of Euroclear Registered Common Shares will receive a voting instruction form (the “VIF”) by mail directly from Computershare AB (“Computershare Sweden”). Additional copies of the VIF, together with the Information Circular, can also be obtained from Computershare Sweden and are available on the Corporation’s website at www.international-petroleum.com. The VIF cannot be used to vote common shares directly at the Meeting. Instead, the VIF must be completed and returned to Computershare Sweden, strictly in accordance with the instructions and deadlines that will be described in the instructions provided with the VIF.

AGM 2021 documentation

 

Presentation by Mike Nicholson at the Pareto Securities’ Conference

Presentation by Mike Nicholson at the Pareto Securities’ Conference

March 25, 2020

CEO Mike Nicholson recently presented at the Pareto Securities’ 16th annual E&P Independents Conference

You can watch the recorded webcast here:
Mike Nicholson Speech at the 16th Annual E&P Independents Conference

Mike Nicholson interview at Pareto Securities’ E&P Independents Conference 2021:
https://youtu.be/a8GfucfCdgU

IPC Announces Updated Share Capital

IPC Announces Updated Share Capital

February 26, 2020

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) reports the following, in accordance with the Swedish Financial Instruments Trading Act:

Following the exercise of stock options by Lukas H. Lundin during February 2021, the number of issued and outstanding common shares of the Corporation has increased by 25,000 to 155,367,757 common shares with voting rights as at February 26, 2021.

 

IPC to Present at a Virtual Town Hall Meeting on February 9, 2021

IPC to Present at a Virtual Town Hall Meeting on February 9, 2021

February 9, 2020

International Petroleum Corporation (IPC) (TSX, Nasdaq Stockholm: IPCO) is pleased to announce that Mike Nicholson, President and CEO, will be presenting at a Virtual Town Hall Meeting on Tuesday, February 9, 2021 at 18:00 CET.

Register for the live event here: https://zoom.us/webinar/register/WN_iOutSXZCTSy88gTdE4XGOw or at www.international-petroleum.com.

A copy of the Virtual Town Hall Meeting presentation will be available on IPC’s website prior to the Meeting.

 

Capital Markets Day presentation 2021

Capital Markets Day presentation 2021

February 9, 2021

Follow the live Capital Markets Day webcast today at 14:00 CET by clicking on the webcast link or by using the dial-in details below:
Canada/International: +1 646 7413 167
UK: +44 207 192 8338
Sweden: +46 8 566 184 67
The PIN code for the dial-in presentation is: 9978201
Webcast link:  https://edge.media-server.com/mmc/p/x8ykwcpj

 

Audiocast – Mike Nicholson and Christophe Nerguararian comment on the year-end 2020 results

Audiocast: Mike Nicholson and Christophe Nerguararian comment on the Year-end 2020 results

February 9, 2021

Listen to Mike Nicholson, CEO, and Christophe Nerguararian, CFO, commenting on the report and the latest developments from IPC.

Follow the 2020 year-end financial results audiocast at 09:00 CET on February 9, live on www.international-petroleum.com or using the dial-in details below:
Canada/International:+1 646 7413 167
UK:+44 207 192 8338
Sweden:+46 8 566 184 67
The PIN code for the dial-in presentation is:  6555758
 Audiocast link:  https://edge.media-server.com/mmc/p/37p6dy2r