8th Mar 2018 09:24
LONDON (Alliance News) - Premier Oil PLC on Thursday reported a sharp rise in annual revenue as it achieved its "best ever full year of production" and said that production in the new year is expected to improve further.
The oil producer, however, swung to a net loss of USD253.8 million for 2017 from net profit of USD122.6 million in 2016, due to previously disclosed impairments and refinancing costs.
Pretax loss for the year stood at USD366.3 million, narrowed somewhat from a USD413.9 million loss the year earlier, on a revenue of USD1.04 billion and USD937.0 million, respectively.
Oil production for 2017 averaged 75,000 barrels of oil equivalent per day, up from 71.4 kboepd in 2016, with the Catcher field in the North Sea achieving first oil in December.
For 2018, the company is targeting oil production of between 80 to 85 kboepd. Catcher is expected to reach 60,000 barrels of oil per day in April, which Premier said is ahead of plan.
Capital expenditure for the year is estimated at USD300 million and operating expenditure between USD17 to USD18 per barrel of oil.
"2017 was a successful year for Premier with the refinancing completed, our producing portfolio performing well, the Catcher field brought on-stream and the notable Zama oil discovery in Mexico. 2018 will see further production growth, allowing us to deliver on our plans for reducing net debt to restore balance sheet strength while also progressing projects that deliver the highest financial returns," said Chief Executive Tony Durrant.
Premier Oil pays no dividend.
Shares in Premier Oil were up 4.2% at 73.91 pence early Thursday.
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