Nostrum Oil Lifts Earnings But Lowers Annual Sales Guidance
LONDON (Alliance News) – Nostrum Oil & Gas PLC on Tuesday said it managed to offset tighter margins in the first half of 2017 with a large lift in revenue, but said it has revised down its sales guidance for the full year in 2017.
Nostrum said sales averaged 41,107 barrels of oil equivalent per day in the first six months of 2017, below its guidance to keep average sales above 44,000 barrels daily. Nostrum said it now expects sales to be lower this year than targeted, lowering its range to 40,000 to 44,000 barrels per day.
Sales and production volumes impacted by one week of maintenance shut in.
Revenue in the first half rose to USD210.0 million from USD163.5 million, enough to offset the tighter earnings before interest, tax, depreciation and tax margin of 37.0% from the margin of 61.7% the year before. As a result, Ebitda in the half climbed up to USD119.8 million from USD100.9 million.
Net operating cashflow in the first half was UISD118.5 million compared to USD78.9 million the year before. Cash at the end of the period stood at USD97.5 million, with pro-forma net debt of USD867.7 million.
Construction of the third gas treatment unit continues in line with guidance and completion is expected before the end of 2017 at a total cost of USD532.0 million.
Nostrum shares were down 0.2% on Tuesday at 384.20 pence.
By Joshua Warner; email@example.com; @JoshAlliance
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