21st Aug 2018 09:36
LONDON (Alliance News) - Nostrum Oil & Gas PLC said Tuesday that its revenue in the first half of the year dropped amid operational challenges.
For the six months to June 30, the Kazakhstan-focused oil & gas production company posted revenue of USD191.5 million, down 8.8% from USD210.0 million a year ago, due to a 27% decrease in sales volumes.
Pretax profit slumped year-on-year to USD11.9 million from USD34.6 million as the company recorded a USD12.0 million loss on a derivative financial instrument.
Earnings before interest, taxes, depreciation and amortisation dipped 6.1% to USD113.2 million from USD120.6 million the prior year.
Average sales volume for the six-month period were at 29,886 barrels of oil equivalent per day, compared to 46,685 barrels of oil per day a year before. Current sales volumes are "in excess" of 32,500 boepd, the company said.
Crude oil and stabilised condensate sales volumes were 11,636 boepd, liquid petroleum gas sales were 3,878 boepd and dry gas sales averaged 14,372 boepd, in the six-month period.
"The first half of 2018 was challenging from an operational perspective. The critical focus for the team was on demonstrating we can stabilise production," Chief Executive Officer Kai-Uwe Kessel said.
The company said that, following the loss of the first production well in the first quarter, it now expects sales volumes to average 32,000 boepd for the year.
Nostrum Oil & Gas shares were trading up 0.3% at 244.00 pence each on Tuesday morning.
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