Neptune Energy announces further growth with Q3 2023 results

The Neptune-operated Gjøa platform. (Photo: Neptune Energy)

NEPTUNE Energy today announced its financial results for the third quarter of 2023.

Proposed acquisition of Neptune Energy by Eni and Vår Energi on track

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  • Proposed transactions on track to complete by the end of Q1 2024.
  • Carve-out of Germany business to existing shareholders to complete by the end of 2023.
  • Separate €200 million Reserve based letter of credit facility secured for Germany business.

Continued improvement in safety, start-up of Seagull and restart of Touat

  • Improved safety performance, with total recordable injury rate of 1.63 per million hours worked.
  • Q3 production of 139.1 kboepd, reflecting higher output from Adorf (Germany) and Snøhvit (Norway).
  • Start-up of Seagull (UK) and restart of Touat (Algeria) in Q4. FY 2023 production guidance revised to ~145 kboepd.

Significant medium to longer-term growth opportunities in upstream and CCS

  • Material gas discovery at Geng North (Indonesia), potential new production hub in Kutei Basin.
  • Near field exploration delivering success with a discovery at Mulder (Norway), follows Rhone (Netherlands) discovery in Q2.
  • Awarded Trudvang CCS licence in Norway, pursuing ~300 million tonnes of net CO2 storage capacity in Northern Europe.

Strong financial performance in Q3, continued low leverage

  • Q3 2023 EBITDAX of $641.9 million, underlying operating profit of $508.5 million, opex of $12.7/boe.
  • YTD post-tax operating cash flow of $1,022.5 million, YTD adjusted development capex of $259.9 million.
  • Low leverage, with net debt to EBITDAX of 0.35 times at 30 September 2023. Cash taxes of $1.400.1 million paid YTD.

FY 2023 cash flow guidance reiterated, lowered for capex

  • FY 2023 post-tax cash flow guidance of ~$1.4 billion and cash taxes of ~$1.9 billion reiterated.
  • Capex guidance lowered to ~$350 million, exploration and pre-development spend revised to <$200 million.
  • Carbon intensity guidance lowered to <8 kg CO2/boe, well below industry peers.

Neptune Energy’s Chief Executive Officer, Pete Jones, said:

“Neptune delivered further growth in the third quarter, with increasing production and the start-up of the Seagull project in the UK. With the restart of Touat in Algeria, we expect production to increase further in the fourth quarter and into next year.

“We have continued to build on strong foundations, with material discoveries in Indonesia and Norway, which follow a discovery in the Netherlands in the second quarter. With the award of a CCS licence in Norway, we are also building a CCS development pipeline of scale in Northern Europe, which positions us well for the future.”

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