11th Nov 2013 10:54
LONDON (Alliance News) - Ithaca Energy Inc. Monday said its pretax profit jumped in its third quarter on increased sales from new assets, despite the company lowering its full-year production guidance.
The North Sea oil and gas producer said its pretax profit increased to USD45.9 million for the three months ended September 30 from USD2.0 million for the same period in 2012.
The company said its sales more than doubled during the period to USD114.1 million from USD41.6 million as new volumes from the company's newly acquired Valiant and Cook sites in the North Sea increased revenues.
The company entered into an extension of its marketing agreement with BP Oil International Limited and sales agreement with Shell Trading International Limited, part of BP PLC and Royal Dutch Shell PLC, respectively.
Ithaca's cost of sales also increased to USD77.3 million from USD27.1 million the previous year as operating costs, depletion, depreciation and movement in the company's oil and gas inventory offset some of its sales income.
The company recently announced that it will experience lower production in its third quarter and posted an average production during the period of 11,942 barrels of oil per day.
Ithaca said on October 15 that due to the major shutdown of its Taqa-operated North Cormorant platform during the three months ended September 30, the company's third quarter net average export production was down at 12,000 barrels of oil equivalent per day compared to 14,300 boepd in its first half.
The company dropped its production forecast Monday, and said it expects its full-year production to average 13,000 barrels of oil equivalent per day.
Ithaca Energy shares were up 1.2% to 145.25 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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