Gulf Oil and Gas accountACCOUNT

Neptune Energy Announces Q3 2020 Results

Source: www.gulfoilandgas.com 11/18/2020, Location: Africa

Neptune Energy has announced its financial results for the three months ended 30 September 2020.

Good safety and underlying operational performance in Q3, with YTD production up

- Continued safety performance improvements, with reductions in Total Recordable Injury Rate and Process Safety Event Rate.

- Q3 production of 134.5 kboepd, due to planned shutdowns and operational issues at joint venture assets in Norway and Algeria. YTD production of 148.6 kboepd, up on corresponding period in 2019.

- Production restricted in Q4 due to repairs at Touat (Algeria) and outage at the Equinor-operated Hammerfest LNG facility (Norway), with loss of revenues from the Snøhvit Unit to be recovered through business interruption insurance. FY production guidance of 140-145 kboepd.

Robust financial performance, with hedging gains and tax refunds boosting cash flow

- EBITDAX of $172.1 million in Q3 reflecting weaker production and continued soft commodity prices, offset by realised hedging gains of $75 million. YTD operating cash flows of $676 million lifted by Norwegian tax refunds.

- Low operating costs of $10.2/boe in Q3. Full year opex expected to average around $9.5/boe.

- Repaid Touat vendor loan, saving ~$12 million per year and increasing available liquidity under the RBL by $275 million.

Strong balance sheet, disciplined capital allocation and healthy liquidity

- Expect FY operating cash flow of around $900 million, reflecting lower cost base and tax refunds, offset by weaker production.

- Resilience programme delivered $290 million of reductions YTD. On track to deliver FY 2020 reductions of ~$330 million.

- Liquidity of $1.3 billion, providing headroom to support value-accretive acquisitions and growth opportunities.

Jim House, Chief Executive Officer, said:

'Despite the ongoing restrictions of the COVID-19 pandemic, Neptune delivered a robust safety, operational and financial performance in the third quarter. Our active hedging programme and tight cost control boosted cash flow and we took further steps to enhance liquidity.

'While repairs at Touat and the outage at the Equinor-operated Hammerfest LNG facility at Melkøya will restrict production in the near-term, we head in to next year with new projects coming online in Norway and Indonesia and high value appraisal activities at Dugong in Norway and Isabella in the UK, which will enhance cash flow and provide longer-term growth.'

Financials and Investment News in Algeria >>

Canada >>  1/22/2021 - Notification of Transactions in the Company's Shares by Director and Persons Discharging Managerial Responsibility ...
Russia >>  1/22/2021 - PetroNeft (PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Lice...

United Kingdom >>  1/22/2021 - Pharos Energy plc (PHAR.L), the Asia-MENA focussed independent oil and gas exploration and production company, is pleased to announce the successful c...
Bermuda >>  1/21/2021 - Borr Drilling Limited announces that in connection with Company’s previously announced liquidity improvement plan, the Company intends to offer up to ...

United States >>  1/21/2021 - Canadian Overseas Petroleum Limited, an international oil and gas exploration and development company, announces that:

- The Company has s...

United States >>  1/21/2021 - NGL Energy Partners LP, through its wholly owned subsidiaries NGL Energy Operating LLC and NGL Energy Finance Corp., announced that they intend to off...




Algeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |

Oil & Gas Projects in Algeria >>

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.