London, 30 November, 2018 – Neptune Energy, the global independent oil and gas E&P company, today announces its financial results for the third quarter of 2018.
In the period to 30 September 2018, Neptune delivered a strong financial and operating performance. It remains on target to meet production guidance for the full year.
Summary of results
|Neptune Energy||Pro forma information relating to EPI business|
|Period 15 February to 30 September 20181||9 months ended September 2018||9 months ended September 2017|
|Total production (kboepd)||160.5||161.5||151.4|
|Average realised oil price ($/bbl)2||70.7||70.0||51.4|
|Operating costs ($/boe)||10.0||10.0||11.1|
|Cash capex ($m)3||151.1||247||508|
Neptune’s average production for the period was 160.5 kboepd, which was in line with the company’s expectations given the planned annual programme of shutdowns in most countries in the period.
On a pro forma basis production for the period increased to 161.5 kboepd compared with 151.4 kboepd for the corresponding period in 2017, largely as a result of higher production in Indonesia and the UK.
Neptune’s capital investment programme continues to progress well, with all projects remaining on schedule.
Construction of its joint venture operated Touat gas project in Algeria is now 93 per cent complete. The operated P1 and Cara projects in Norway are being combined in the pre-sanction phase, with sanction for both projects expected early next year. The company’s portfolio of non-operated projects also remains on track.
During the third quarter, three new exploration wells commenced drilling, namely the Bagha C-88 in Egypt, the Silfari prospect in the Norwegian North Sea and Cygnus FB9 in the UK acreage of the North Sea.
Neptune delivered a strong financial performance for the period, with operating cash flow (post tax) of $740.4 million.
The results benefited from strengthening markets for both oil and gas, resulting in Neptune’s average realised price increasing 36 per cent to $70 per barrel.
A combination of higher commodity prices and higher production resulted in Group EBITDAX increasing 55 per cent to $1,482 million on a pro forma basis.
Sam Laidlaw, Executive Chairman, said: “With the new management team now in place, we continued to build on our strong first half performance throughout the third quarter, delivering strong production and financial results.
“We also delivered good strategic progress with the acquisitions of VNG Norge, Seagull and Isabella, which are important steps in developing the portfolio.”
Jim House, Chief Executive Officer, said: “2018 has been a transformational year for the company as we integrated the ENGIE E&P and VNG Norge businesses. We have achieved this while taking a more rigorous approach to production management.
“Our portfolio provides us with attractive prospects for growth. Since February we have continued to identify and progress additional opportunities within our acquired portfolio to add reserves and strengthen the medium term production outlook as we continue to build Neptune Energy into the leading independent international E&P company.”
– ends –
A full copy of the results statement can be found on our website: www.neptuneenergy.com/investors
1 Relates to the post-acquisition period only.
2Excluding the impact of hedging.
3 Before acquisitions.
4EBITDAX comprises net income for the period before income tax expense, financial expenses, financial income, non-recurring acquisition-related expenses, mark-to-market adjustments on commodity contracts exploration expense and depreciation and amortisation.
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About Neptune Energy
Neptune Energy is an independent global E&P company and, having completed the acquisition of the exploration and production business of the ENGIE group in February 2018, is now active across the North Sea, North Africa and Asia Pacific. The business had production of 165,000 net barrels of oil equivalent per day during H1 2018 and 2P reserves at 31st December 2017 of 542 million barrels of oil equivalent. The Company is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.
For further information please visit: www.neptuneenergy.com
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