Wentworth, the independent, Tanzania-focused natural gas producer is pleased to announce its audited financial results for the year ended 31 December 2020 along with its proposed final dividend declaration for the full year 2020. All values are expressed in US dollars unless stated otherwise.

As a domestic natural gas business in Tanzania, our purpose is to empower people with affordable, low carbon and reliable energy by working to close the energy access gap. As a responsible company, we recognise the importance of providing our stakeholders with greater transparency around how we execute on this strategy and perform against key environmental, social and governance (ESG) criteria. 

HIGHLIGHTS

Financial

• Declaring a final dividend in respect of FY 2020 of 1.0 pence per share ($2.6 million); a total dividend distribution in respect of 2020 of $3.8 million (1.5 pence per share) representing an increase of 27% from 2019 ($3.0 million) and a yield of approximately 6.7% (calculated on an annualised basis)
• Strong and resilient financial performance against a challenging macro-economic backdrop
• Revenues of $18.9 million (2019: $18.6 million), underpinned by long-term fixed gas price contracts 
• Adjusted earnings before interest, taxes, depreciation, amortization and exploration (EBITDAX) of $9.7 million (2018: $8.8 million)
• Debt free with cash on hand of $17.8 million at 31 December 2020
• TPDC continues to remain fully current with all invoices for gas sales

Operational

• Production averaged 65.5 MMscf/day (2019: 70.3 MMscf/day), lower due to fluctuating demand but in line with guidance of 60-70 MMscf/day
• Capacity from existing wells and production facilities increased to in excess of 100 MMscf/day
• Low operational cost of production of $0.69 / Mscf
• Wentworth's share of Gross 2P Reserves as at 31 December 2020 estimated by RPS to be 90.8 Bcf with a post-tax NPV10 of $116.6 million

Corporate

• Ongoing commitment to a progressive capital returns policy
• Tanzania focused growth continues to be a key focus to capitalise on existing operational track record
• Continued process of Board refreshment, with Bob McBean retiring as Chairman at the AGM and John Bentley stepping down during the year
• At least one new Non-Executive Director to be appointed during 2021 with the aim of bringing further diversity to the Board

Sustainability
Ongoing ESG strategy remains a priority with a focus on measurement and mitigation strategies for climate-related impacts in 2021

Sustainability Report

• Published inaugural Sustainability Report for 2020; it addresses how we manage the impacts of our business by upholding relevant international standards and how we take our responsibility to our stakeholders, society and the environment seriously  
• Announced membership of the United Nations ("UN") Global Compact, underlining our commitment to operating responsibly in line with the UN's Ten Principles on human rights, labour, environment and anti-corruption and to take strategic action to the support the UN's Sustainable Development Goals

Social and Environmental Impact

• The power access gap in Tanzania is growing despite domestic energy supply increasing; transformational  growth is needed in domestic energy supply to deliver the Government's target of universal access by 2030 through low-cost, low carbon solutions that will secure a just transition for Tanzania
• Natural gas will play a critical role in meeting this target to support cheaper and more reliable electricity as well as facilitating an enabling environment to supplement carbon-free renewable energy systems, such as hydro and solar

Natural gas constitutes 50% of Tanzania's energy mix:

• Production from Mnazi Bay constitutes 50% of the gas produced into the grid
• 30% of Tanzania's electricity customers rely on Mnazi Bay gas 

2021 Outlook

• Record quarter performance to date with average production volumes for Q1 2021 of 84.74 MMscf/day (gross) compared with Q1 2020 average of 63.60 MMscf/day (gross)
• All-time production volume highs at Mnazi Bay of 110.65 MMscf/day including monthly average production of 101.85 MMscf/day (gross) during March 2021, demonstrating the ability to supply greater than 100 MMscf/day (gross) consistently during periods of high demand
• 2021 Mnazi Bay production guidance remains unchanged at 65-75 MMscf/day (gross), considering the seasonal rainy season typically impacts demand for natural gas during Q2

Dividend

The directors propose that a final dividend of 1.0 pence per ordinary share be paid to the holders of the ordinary shares who are on the register of members of the Company at 6.00 p.m. on 25 June 2021. The proposed final dividend will bring distributions to shareholders with regard to the financial year ended 31 December 2020 to $3.8 million, an increase of 27% from 2019 distributions of $3.0 million and in line with the Company's stated commitment to a sustainable and progressive dividend. 

KeyFacts Energy: Wentworth Tanzania country profile