30th May 2024 13:49
(Alliance News) - Nostrum Oil & Gas PLC on Thursday reported strong first quarter earnings on the back of increased sales volumes.
The Caspian Basin-focused independent oil and gas company said in the first quarter ended March 31, revenue rose 83% to USD31.8 million from USD17.4 million the previous year.
Earnings before interest, taxes, depreciation, and amortisation more than doubled to USD10.6 million from USD4.6 million.
Nostrum in total processed 11,943 barrels of oil equivalent per day, representing a 14% increase from 10,479boepd.
Dry gas comprised the largest part of the product mix during the quarter at 48%, up from 41% year-on-year. Meanwhile, crude oil production fell to 20% of the mix from 28%.
Chief Executive Officer Arfan Khan said: "The improved financial performance was underpinned by the lower upstream base production decline owing to expansion of the gas-lift capacity, and increasing midstream third-party production.
"To safeguard our margins and cash balances, we are continuing to prioritise cost optimisation and capital allocation that maximizes our ability to further grow the midstream business and progress the upstream Stepnoy Leopard development."
Startup of the Stepnoy Leopard fields is expected in late 2026 with the initial development phase costing USD100 million.
Nostrum shares were down 4.4% to 5.20 pence each in London on Thursday afternoon.
By Elijah Dale, Alliance News reporter
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