Neptune Energy announce Q1 2023 results
Good safety performance, new projects coming online
• Improved safety performance, with total recordable injury rate lower at 1.82 per million hours worked.
• Q1 production of 142.1 kboepd, successful start-up of Fenja (Norway) in April adding ~10 kboepd of production at plateau.
• Seagull (UK) close to completion with start-up in July, gas exports from Touat to restart in Q3 2023.
Progress on CCS development pipeline, industry leading ESG ratings
• CCS licence application submitted for Trudvang project (Norway), L10 CCS (Netherlands) application to follow in Q2.
• Gudrun electrification on track to come online in the fourth quarter.
• Industry leading Sustainalytics ESG rating of 21.4, ranked in top 3% of all global oil and gas companies rated.
Robust financial performance, further deleveraging
• Post-tax operating cash flow of $347.5 million, EBITDAX of $1,302.2 million, underlying operating profit of $739.6 million.
• Further deleveraging with net debt to EBITDAX of 0.37 times at 31 March 2023. Cash taxes of $393.7 million.
• Annual RBL redetermination completed providing borrowing base of $1.4 billion, RBL refinancing by end of Q2 2023.
Disciplined capital allocation, focused on shorter-term returns
• Adjusted development capex of $121.8 million in Q1 2023, focused mainly on project completions in Norway and UK.
• FY 2023 guidance lowered for post-tax operating cash flow to $1.6-1.8 billion, cash tax guidance unchanged at ~$2.0 billion.
• Focus on shorter-cycle projects and near-term returns in countries with favourable investment climate.
FINANCIAL SUMMARY
| Neptune Energy | First quarter 2023 | First quarter 2022 |
| Revenue ($m) | 1,425.4 | 1,149.3 |
| Operating profit before financial items ($m) | 1,081.8 | 795.5 |
| Profit before tax ($m) | 1,057.6 | 753.4 |
| Net profit after tax ($m) | 205.9 | 493.6 |
| Net cash flows from operating activities ($m) | 347.5 | 741.3 |
| Non-GAAP measures | ||
| Total daily production (kboepd) (note a) | 142.1 | 133.7 |
| Operating costs ($/boe) | 13.0 | 11.6 |
| EBITDAX ($m) (RBL basis) (note b) | 1,302.2 | 956.0 |
| Underlying operating profit ($m) (note c) | 739.6 | 795.5 |
| Adjusted development cash capital expenditure ($m) (note d) | 121.8 | 128.9 |
| Free cash flow ($m) (note e) | 188.5 | 578.5 |
| Net debt ($m) (book value) (RBL basis) (note f) | 1,546.3 | 1,552.1 |
| Net debt/EBITDAX (RBL basis) (note f, g) | 0.37x | 0.57x |
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