By Alban Kacher
April 17 (Reuters) - French oil group Maurel & Prom (M&P) reported an increase in cash generation in end-March from the previous quarter on Thursday, allowing it to maintain a firm growth outlook even as its sales dropped sharply.
M&P recorded a positive net cash position of $50 million at end-March, compared with $33 million at end-December and $11 million as a year earlier.
Thanks to its cash position, coupled with a low breakeven point (the level of output or sales where a business's revenue equals its total costs), M&P expects to "continue developing sustainably, even in the event of a prolonged downturn in crude oil prices", Group CEO Olivier de Langavant said in a statement.
M&P recorded its highest ever total production of 38,534 barrels of oil equivalent per day (boepd) in the first quarter ended March 31, driven by increased output in Venezuela, which jumped 9% quarter-on-quarter.
Its "extremely healthy balance sheet should enable it to navigate serenely through this period of geopolitical instability while remaining active in the search for new M&A opportunities," analysts at Portzamparc said in a note.
However, the company faces uncertainty in the region as it saw its licence revoked by the U.S. Treasury Department's Office of Foreign Assets Control, with a wind-down period until May 27.
Consolidated revenue dropped 70% to $64 million in the quarter, compared with a 12% increase a year earlier, due to lifting imbalances, which had a negative impact of $76 million - net of inventory revaluation - and the absence of oil trading.
"Only one cargo was sold during the period in Angola, but several liftings are expected in the second quarter in Gabon and Angola, starting April."
The group proposed a dividend of 0.33 euros ($0.3746) per share at its annual general meeting in May.
M&P's shares fell 0.8% in early trade.
($1 = 0.8811 euros) (Reporting by Alban Kacher; Editing by Rashmi Aich)