Neptune Energy announces Full Year 2021 results
Strong operating environment in 2021, with production to increase in 2022
• Good HSE performance with lower process safety event rate. Targeting further improvements in personal and technical safety in 2022.
• FY 2021 production of 130.0 kboepd (148.3 kboepd including production-equivalent insurance income), reflecting outages at Touat and Snøhvit.
• Guidance of 135-145 kboepd for 2022 (140-150 kboepd including production-equivalent insurance income), dependent upon Snøhvit restart timing and Touat performance.
• All sanctioned projects expected online before the end of 2023, increasing production to ~170 kboepd.
Acceleration of lower carbon projects, aim to store more carbon than we emit
• Aim to store more carbon than is emitted from our operations and the use of our sold products by 2030, through accelerating plans for integrated energy hubs, including CCS where we can store carbon at scale.
• Focus on reducing operational emissions through electrification, with more than 35 kboepd of net production electrified by the end of 2022, before increasing to around 50 kboepd by 2027.
• Target L10 CCS project (NL) to be FEED-ready by the end of 2022, with FID due in 2023. Gudrun electrification project on track for completion by the end of 2022.
Long life, low cost and lower carbon portfolio
• 2P reserves increased to 604 mmboe, with a higher proportion of reserves developed. Four-year reserves replacement ratio of 123%. 2C resources of 433 mmboe, providing material future growth potential.
• Carbon intensity from managed production stable at 6.4 kg CO2/boe, methane intensity from managed production of 0.02%. On track to hit 2030 targets.
• Project pipeline to deliver medium-term reduction in opex to <$11/boe.
Growing cash flow, strong balance sheet
• Operating cash flow of $1.7 billion, EBITDAX of $2.1 billion and underlying operating profit of $1.4 billion. Strong earnings and cash flow enabled dividends and capital distributions totalling $1.0 billion by Neptune Energy Group Limited.
• Total available liquidity of $1.1 billion at end of the period. RBL borrowing base of $2.3 billion reconfirmed in March 2022.
• Net debt to EBITDAX of 1.0 times at 31 December 2021. Aim to maintain a ratio of <1.5 times through the cycle.
• Expect to generate further strong cash flow in 2022, notwithstanding higher taxes. Development projects fully funded from operating cash flow.
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