President Energy (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provides a brief Company Update.
President notes the results of the recent Primary Election Results in Argentina and the subsequent fall in the value of the Argentinian peso.
President emphasises that it is a dollar based business and that trading continues as normal. Accordingly, the Company does not envisage any material adverse impact on its business or prospects from the fall in the value of the peso nor does it see any actual or contingent threats to its assets as a result of any potential political changes.
President plans and mitigates in its day to day business against currency volatility and, as set out in the 2018 Annual Accounts that were released on 23 May, 2019, cash losses during the full 12 month period were less than US$ 100,000 on turnover in Argentina in excess of US$ 40 million (less than 0.3%). Yesterday’s currency decline has had at worst a neutral effect on President’s cash position due to virtually all of its cash being held in US dollars at the time.
Indeed, as a cash generative, profitable business, President views any volatility as a potential market opportunity.