19th Sep 2024 11:14
(Alliance News) - Capricorn Energy PLC on Thursday said it swung to a profit in the first half of 2024, as daily production aligns with full-year guidance.
The Egypt-focused oil and gas exploration company said its revenue for the six-month period ended June 30 fell 18% on-year to USD80.8 million from USD98.8 million. However, it swung to a pretax profit of USD16.4 million from a loss of USD37.0 million last year.
The company expects full-year production to meet the guidance of 20,000 to 24,000 barrels of oil equivalent per day, reflecting "robust asset performance and the resumption of development drilling".
Average production to date has been approximately 24,700 barrels of oil equivalent per day.
Chief Executive Randy Neely said: "Following material cash collections in Egypt, we have resumed investing. A key catalyst in improving production and unlocking value from these assets will be an amendment to the terms of our production sharing contracts and we are formally engaged with our operating partner, Cheiron, and the Egyptian General Petroleum Corporation to achieve this.
"With a strong balance sheet and up to USD72 million of contingent and deferred receipts due in the months ahead, the company moves into the second half of 2024 with positive momentum as we prioritise opportunities for further shareholder returns and to create value in the UK North Sea, supported by our Egyptian asset base."
Shares in Capricorn Energy were up 6.9% at 232.00 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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