Premier improves its cash flow outlook

摘要

PREMIER Oil has switched its full-year cash flow outlook from neutral to positive on the back of improving market conditions, but the UK-listed player is also braced to book impairments. Premier said in April that it expected cash flow to be neutral this year but improvements in commodity prices and capital spending reductions in the first half have changed the outlook, management said in a trading update this week. "As a result of the recent improvement in commodity prices, together with the action taken by Premier during the first half of the year to reduce its 2020 expenditure, the group now expects to be free cash flow positive (after interest) for (the full year) based on the current forward curve," Premier said. However, Premier also warned it expects to book several hundred million dollars in write-downs and charges in the first six months of the year on weaker overall commodity prices.