31st Mar 2014 08:29
LONDON (Alliance News) - Ithaca Energy Inc Monday said its pretax profit jumped in 2013 as production and revenues more than doubled during the period.
The North Sea oil and gas producer said its pretax profit increased 38% to USD40.2 million in 2013 from USD29.2 in 2012, as revenues increased to USD413.9 million from USD170.5 million.
Ithaca said its revenues increased as oil and gas sales volumes grew during the period due to the inclusion of sales from the Dons and Causeway fields and additional sales from its Cook field.
Cost of sales also more than doubled to USD327.0 million from USD135.0 million, while the company noted a USD52.9 million impairment charge, as tit wrote-off its Beatrice and Jacky fields which management determined had reached the end of their economic life.
Ithaca said total production more than doubled to 10,392 barrels of oil equivalent per day from 4,673 barrels during the period.
In January, the company said its total pro-forma production for 2013 was roughly 13,000 barrels of oil equivalent per day, including its newly acquired Valiant Petroleum PLC, in line with previous guidance, after average production in the company's fourth quarter was down at 11,300 barrels per day due to an unplanned shutdown of the Cook field to repair a gas export compressor at the site.
On Monday, Ithaca said its 2014 production guidance remains unchanged in the range of 11,000 to 13,000 barrels of oil equivalent per day. It said extreme weather over recent months has resulted in operational delays to sidetracking its Fionn production well, increasing the overall costs of the programme and delays in moving its Ensco 100 rig to the drilling location for its next two development wells in the Greater Stella Area.
The company said the Fionn well completion is currently being run, and it is anticipated that the well will be on-stream in May, while plans to enable start up of production from the Greater Stella development area is still planned for the end of the year.
"While delivery of first hydrocarbons from the hub remains the main focus of near-term growth, we continue to look for new North Sea opportunities to drive additional longer-term shareholder value," Chief Executive Les Thomas said in a statement.
Ithaca Energy shares were up 0.8% to 150.69 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
IAE.L