27th Jan 2023 11:37
(Alliance News) - Nostrum Oil & Gas PLC on Friday said it expects a revenue increase, despite a drop in production.
The Amsterdam-headquartered oil and gas company with operations in Kazakhstan said 2022 production after treatment averaged 13,200 barrels of oil equivalent per day, down 22% from 17,032 boepd a year ago.
The company said 2022 daily sales volumes averaged 12,524 boepd, down 18% from 15,330 boepd in 2021.
Nostrum said it expects 2022 revenue to be more than USD199 million, up 1.8% from USD195.3 million in 2021.
The group's cash balance was above USD233 million at December 31, up from USD210.2 million at September 30. This was due to favourable oil prices, production optimisation and cost controls, Nostrum said.
The company noted that it began a tie-back project for third-party feedstock from Ural Oil & Gas LLP to be taken for treatment in Nostrum's facilities. The company said it has budgeted USD5 million of capital expenditure for the project.
Nostrums reported no fatalities during 2022 operations, and zero lost time injury, up from two in 2021.
Chief Executive Officer Arfan Khan said: "As always, health and safety remains our priority and we continue to exercise extreme caution to ensure the safety of our people and contractors, while minimising the disruption to production and operations.
"Looking ahead, we believe the company is well-positioned to embark on a new stage of its journey capitalising on opportunities to help commercialise our world class infrastructure."
The company said its restructuring process of USD725 million 8.0% senior notes and USD400 million 7.0% senior notes would be closed "in the next few weeks". The company has proposed to change the longstop date of the restructure from February 16 to March 31.
Nostrum shares were down 13% trading at 2.50 pence per share on Friday morning in London.
By Harvey Dorset, Alliance News reporter
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