Full year production guidance unchanged, further cost reduction across the Group
- Production of 151.8 kboepd, reflecting lower production from Norway offset partly by higher production in the UK. Full year production guidance unchanged. Further improvement in HSSE metrics.
- Operating cash flow of $362 million and costs down further to $10.1/boe. Realised oil price of $58.5/bbl and dry gas sales price of $6.5/mcf before hedging, reflecting lower commodity prices during the period.
- Focus on cost control, with programmes underway across the Group targeting both opex and G&A. Capex lower for the period due to project cost run rate, but no change to full year guidance.
Good progress on project delivery, with all developments progressing on time and on budget
- Touat on track for first export gas in June, with 99% of the project complete. Plateau production expected during Q3. Touat project will be largest contributor to production increase in H2 2019.
- North Sea developments remain on track, with rig and EPCI contracts awarded for Duva and Gjøa P1 fields. Seagull and Fenja projects on plan.
- Exploration programme ramping up, with important wells in the UK, Germany and Norway expected to commence drilling in Q3.
Full year guidance unchanged, with higher production in H2
- Maintain production guidance of around 155 kboepd for the full year, weighted towards the second half.
- Higher production expected by year end, due to contribution from Touat and three infill wells at Fram.
- Upgrade from ratings agencies, with ‘positive outlook’ from Moody’s and a ‘BB’ first rating from Fitch.
|Neptune Energy Q1 2019||Neptune Energy Q4 2018||Proforma information (note a)||Neptune Energy Q1 2018 (note b)|
|3 months to 31 March 2019||3 months to 31 December 2018||3 months to 31 March 2018||15 Feb – 31 March 2018|
|Total daily production (kboepd)||151.8||155.8||164.5||161.5|
|Average realised oil price ($/bbl)||58.5||71.0||68.2||69.3|
|Average realised gas price ($/mcf)||6.5||8.8||7.6||8.1|
|Operating costs ($/boe)||10.1||10.9||11.0||10.6|
|Operating cash flow ($m)||362.3||416.0||213.0|
- Results for this period reflect the acquired EPI business pro forma for the three months ended 31 March 2018 (including the pre-acquisition period from 1 January to 15 February 2018).
- Results for this period consolidate the acquired EPI business for the post acquisition period, from 15 February 2018 to 31 March 2018.
Jim House, Chief Executive Officer
“We continued to make operational progress across the Group in the first quarter, while reducing costs. We also made good progress on project delivery, with all developments progressing on time and on budget.
“Our guidance for the full year remains unchanged, with the Touat gas project in Algeria scheduled to come online in June and hit plateau production early in the third quarter. This will add significantly to our production capacity, with higher production expected in the second half of the year.”
– ends –
(Investor Relations Manager)
+44 (0) 207 832 3948
About Neptune Energy
Neptune Energy is an independent global E&P company with operations across the North Sea, North Africa and Asia Pacific. The business had production of 162,000 net barrels of oil equivalent per day in 2018 and 2P reserves at 31st December 2018 of 638 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.
For further information please visit: www.neptuneenergy.com