Trinidad Petroleum Shows Strong Results Since Corporate Reorg

  • TPHLTT's results through June of this year show strong growth which reflects the company's corporate reorganization into a pure E&P company and the new management focus on profitability. Management mentioned in the results releases that TPHLTT "exceeded all its financial and operational targets."
  • For the first nine months of the 2019 fiscal year (last 3 quarters ending June '19) revenues were $1.30Bn and EBITDA was $255.00Mn, which annualized indicates a $340.00Mn EBITDA with a 19.0% margin.  This results in net leverage of about 5x and estimated interest coverage at between 2.7x-3.0x.
  • The company's release indicates that production grew sequentially every month since the beginning of the year, reflecting new management efforts to increase operating efficiency. TPHLTT also said that it signed an MOU with Shell to develop its offshore oil reserves, among other activities.
  • The TPHLTT '26s entered the EMBIGD index in August, which should increase its investor base given its high coupon, government ownership, and  'Ba3/BB' ratings. 

(Source: OPCO)