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 2023First 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 ($m)                              347.5                              741.3
Non-GAAP measures  
Total daily production (kboepd) (note a)142.1133.7
Operating costs ($/boe)13.011.6
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)188.5578.5
Net debt ($m) (book value) (RBL basis) (note f)1,546.31,552.1
Net debt/EBITDAX (RBL basis) (note f, g)0.37x0.57x

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