26th May 2015 06:43
LONDON (Alliance News) - Nostrum Oil & Gas PLC on Tuesday said its earnings and revenue dropped in the first quarter of 2015 as the low oil price offset a rise in production for the FTSE 250-listed Kazakhstan-focused oil and gas company.
Nostrum said its earnings before interest, taxation, depreciation and amortisation in the first quarter to the end of March was USD48 million, down 41% from the USD81.5 million it posted in the fourth quarter of 2014. The earnings were dragged lower by a 38% fall in revenue in the quarter, down to USD100 million from USD161.3 million, though Nostrum said additional revenue of around USD13 million from the quarter will be recognised in the second quarter from export gas sales.
The lower revenue came despite production for the company rising by 8.3% in the quarter, up to 45,479 barrels of oil equivalent per day from 42,011 barrels in the fourth quarter. The group has maintained its production guidance for 2015 at 45,000 barrels of oil equivalent per day.
Nostrum said its EBITDA margin remained nearly flat in the quarter, at 49% compared to 50.4% in the fourth quarter, as operating expenditure fell by 19%. Nostrum said its capital expenditure plans for the year are fully funded and said it will be able to maintain current production in 2015 and in 2016 and will complete construction on the GTU3 gas plant in 2016.
"The first quarter has been a challenging quarter financially as we have experienced far lower prices for our products as compared to the first quarter of 2014. However, the lower liquids price has been partially offset by our improved gas sales revenues as a result of a new contract to export the majority of our dry gas," said Chief Executive Kai-Uwe Kessel.
By Sam Unsted; [email protected]; @SamUAtAlliance
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