Amidst reports that Aberdeen’s Waldorf Production is being faced with liquidity shortfalls, the firm remains tight-lipped.
It is understood that the Aberdeen-headquartered firm’s net debt stood at $399 million as of 31 December 2023.
However, the firm with a stake in 10 UK assets has said that it will not comment on this situation.
The firm has shared that it does not expect to be in a position to make available the annual financial statements for the financial year ending 31 December 2023 by the end of this month.
Financial and legal advisers have been brought in to help with this issue and a number of the firm’s shareholders have been contacted.
It has been reported by trade publication Upstream that the business has two outstanding bonds totalling $225 million.
Waldorf Production’s ratio of total net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) was said to be 0.90 times, which was in compliance with its bond covenants.
Not for sale?
This news comes a month after Waldorf Production’s chief financial officer Aaditya Chintalapati said: “Management focus continues to be on acquisitions in the UK North Sea” for 2024.
Mr Chintalapati shared that after being “fairly quiet” in the mergers and acquisitions market, Waldorf Production is in “multiple discussions” with its peers.
In a recent investor update, the business said that through these deals it aims to boost production that can “quickly slot into” its existing portfolio.
Late last year Waldorf Production dismissed suggestions the company is for sale, outlining a rise in production and cash flow amid an ‘improving’ outlook for North Sea M&A.
In January it was reported that the firm was planning to sell its stakes in a pair of CNOOC-operated North Sea oilfields.
At the time of the news Waldorf had already taken bids for its stakes in the Scott asset which it holds a 21.83% stake in and its 1.59% share in its tieback called Telford.
As part of a bid to improve liquidity in 2024, Mr Chintalapati said Waldorf will be looking at that sell-off and an undrawn $45m Shell pre-payment facility.
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