Hurricane Energy Announces Full-Year Results 2021

Source: 4/28/2022, Location: Europe

Hurricane Energy plc, the UK based oil and gas company, announces its full-year results for the period ended 31 December 2021.


Financial results

- Revenues of $240.5 million from seven liftings of Lancaster crude (2020: $180.1 million from 12 liftings)

- Cash production costs of $28.2/bbl (2020: $17.9/bbl)

- Generated $135.7 million of free cash flow†, equivalent to $36.2/bbl (2020: $74.2 million, $14.6/bbl)

- Profit after tax for the period of $18.2 million (2020: loss after tax of $625.3 million)

- Net free cash† of $51.5 million (31 December 2020: $111.4 million)

- Net debt† of $27.0 million (31 December 2020: $118.6 million)

- Repurchased $151.5 million of Convertible Bonds at average price of 86%, saving $29.5m in future principal and interest


- Production within guidance with average daily rate of 10,267 bopd (2020: 13,900)

- Excellent operational uptime of 92.3%, covering planned and unplanned events

- Crude oil sales reached over 10 million barrels with 3.6 Mbbls sold across seven cargoes in 2021

- FDPA consent received allowing for production below bubble point

- Following unsuccessful farmout process, JV partners agree surrender of P1368(S) (Lincoln) licence


- The Company's proposed financial restructuring was ultimately not pursued following the High Court Judgment that the restructuring should not be implemented

- In June 2021, the incumbent Non-Executive Directors resigned from the board, with John Wright and David Craik appointed to the board as Non-Executive Directors and John Wright assuming the position of Interim Chairman

- In October 2021, Philip Wolfe was appointed to the board as Independent Non-Executive Director


- FPSO Charter extension agreed in March 2022

- Full bond repayment anticipated in July 2022

- Net free cash† of at least $60m projected following bond repayment, assuming production in line with guidance and oil prices of at least $90/bbl

- Focus on efficient capital allocation to deliver most value for shareholders

- Consideration of opportunities within existing portfolio and new assets

Antony Maris, CEO of Hurricane, commented:

"This last year has been one of profound change for Hurricane. Despite all the recent volatility in the oil price, with the expectation that oil prices remain over $90/bbl, post bond repayment we forecast to have over $60 million of net free cash.

The UK Government's renewed emphasis on security of supply is welcome and we are working hard to identify how best to optimise capital allocation in future activities to build further value for our shareholders. We have opportunities both within our existing portfolio, and in new opportunities in the UK oil and gas sector.

Against the backdrop of our demonstrable operational track record, financial discipline, and the significant rise in oil prices, we are preparing Hurricane for the future. Our thoughts are therefore fully focused on building on our position of increasing strength and value."

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