Neptune Energy announces Q1 2021 results
Neptune Energy today announces its financial results for the three months ended 31 March 2021
Good operational performance, with production in line with guidance
• Continued improvement in health and safety, with total recordable injury rate down to 1.3 per million hours worked in the period
• Q1 production of 125.7 kboepd (139.0 kboepd including production-equivalent insurance income), in line with guidance
• First production from Gjøa P1 (Norway) and Merakes (Indonesia) projects, adding c.19 kboepd at plateau
• Exports from Touat (Algeria) recommenced in April
Strong financial performance, with higher prices supporting improved cash flow
• Average realised prices (including hedging) of $53.4/bbl for oil and $6.1/mcf for gas
• Continued low operating costs of $10.1/boe. Adjusted development capex of $153.4 million; activity to fall in H2
• EBITDAX of $323.2 million, reflecting stronger commodity prices and tight cost control. Post-tax operating cash flow of $314.1 million on track for full year guidance
Production growth momentum on track, with more than 27 kboepd to be added in 2021
• Acquisition of oil and gas fields in Germany complete, adding c.1.8 kboepd production. Pegasus West (UK) acquisition announced in May, adding possible tie-back development to Cygnus
• Duva (Norway) on track for first production in Q3, adding 8 kboepd
• Snøhvit (Norway) restart revised by the operator to 31 March 2022, mitigated through loss of production insurance. FY 2021 group production guidance unchanged
Further long-term growth opportunities, supported by strong liquidity, higher credit and ESG ratings
• Further exploration success with a discovery at Blasto (Norway). Dugong (Norway) appraisal well successful
• Completed annual redetermination of RBL facility and reconfirmed a borrowing base of $2.3 billion. Total available liquidity of $1.2 billion to support growth
• Upgraded credit ratings to ‘stable’ from S&P and Fitch; global top-quartile ESG rating of 26.1 (Sustainalytics)
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