Wentworth dishes out U$4.2m dividend thanks to TPDC payments for gas

11Jan 2021
The Guardian Reporter
Dar es Salaam
The Guardian
Wentworth dishes out U$4.2m dividend thanks to TPDC payments for gas

TIMELY payments of gas sales made by Tanzania Petroleum Development Corporation last year enabled Wentworth Resources which owns Mnazi Bay gas wells to generate U$15 million in revenue and pay its shareholder U$4.2 million in dividend.

Wentworth Resources CEO, Katherine Roe (R) on a visit to a public school in Mtwara last year.

In a recent press statement, the London Stock Exchange listed company said after paying interim dividend of U$1.2 million during the first half of last year, it paid the final dividend by December taking the total to U$4.2 million, being an increase of 20 percent compared to 2019.

"The safety and wellbeing of our employees continues to be our number one priority and we're pleased that Mnazi Bay has remained fully operational since the pandemic with no COVID-19 cases to date, a safe and healthy crew and no adverse impact on supply. Our annual production guidance range remains unchanged at 60 - 70 MMscf/d (gross),” said Wentworth CEO, Katherine Roe.

Roe said the company continues to operate a robust and resilient business due to stable production and reliable cash flows from its long-term fixed gas price contracts. “We are especially proud of the strength of the business despite the challenging macroeconomic backdrop, which is reflected in our balance sheet, with zero debt and $17 million cash at the end of October. This has enabled us to return capital to shareholders totalling $4.2 million,” she noted.

She further pointed out that during 2020, her priority and the wider team had been to ensure that the company’s net impact on communities and wider society in Tanzania is positive. “Our ambition is to grow our domestic gas business in Tanzania in a responsible way that enhances the lives of our domestic stakeholders whilst increasing returns for shareholders,” Roe pledged.

“We remain committed to being a long-term partner for Tanzania in the delivery of low-carbon, domestic energy supply growth that will underpin the socio-economic development of the country in the near and longer-term," the Wentworth CEO promised.

Among other highlights of the report include Mnazi Bay’s continued full operations with no adverse impact on supply from the coronavirus pandemic with annual production guidance remaining on track to average between 60 - 70 million standard cubic feet per day (MMscf/d).

As projected, production volumes were higher in Q3 2020 at 68.8 MMscf/d (gross) compared to 58.3 MMscf/d (gross) for H1 2020, due to increased demand as a result of the lifting of COVID-19 restrictions; production volumes have also risen during Q4 2020

“Mnazi Bay is well-positioned to supply increased gas volumes and support incremental demand growth as seen in Q4 2020 and expected in 2021, with the capacity to supply volumes of 100 MMscf/d (gross),” the report stated...read more on https://epaper.ippmedia.com