Neptune Energy, the global independent oil and gas E&P company, today announces its financial results for the third quarter of 2018.

In the period to 30 September 2018, Neptune delivered a strong financial and operating performance. It remains on target to meet production guidance for the full year.

Summary of results

Operational highlights
 Neptune’s average production for the period was 160.5 kboepd, which was in line with the company’s expectations given the planned annual programme of shutdowns in most countries in the period.

On a pro forma basis production for the period increased to 161.5 kboepd compared with 151.4 kboepd for the corresponding period in 2017, largely as a result of higher production in Indonesia and the UK.

Portfolio highlights
Neptune’s capital investment programme continues to progress well, with all projects remaining on schedule.

Construction of its joint venture operated Touat gas project in Algeria is now 93 per cent complete. The operated P1 and Cara projects in Norway are being combined in the pre-sanction phase, with sanction for both projects expected early next year. The company’s portfolio of non-operated projects also remains on track.

During the third quarter, three new exploration wells commenced drilling, namely the Bagha C-88 in Egypt, the Silfari prospect in the Norwegian North Sea and Cygnus FB9 in the UK acreage of the North Sea.

Financial highlights
Neptune delivered a strong financial performance for the period, with operating cash flow (post tax) of $740.4 million.

The results benefited from strengthening markets for both oil and gas, resulting in Neptune’s average realised price increasing 36 per cent to $70 per barrel.

A combination of higher commodity prices and higher production resulted in Group EBITDAX increasing 55 per cent to $1,482 million on a pro forma basis.

Sam Laidlaw, Executive Chairman, said: 
“With the new management team now in place, we continued to build on our strong first half performance throughout the third quarter, delivering strong production and financial results.

“We also delivered good strategic progress with the acquisitions of VNG Norge, Seagull and Isabella, which are important steps in developing the portfolio.”

Jim House, Chief Executive Officer, said: 
“2018 has been a transformational year for the company as we integrated the ENGIE E&P and VNG Norge businesses. We have achieved this while taking a more rigorous approach to production management.

“Our portfolio provides us with attractive prospects for growth. Since February we have continued to identify and progress additional opportunities within our acquired portfolio to add reserves and strengthen the medium term production outlook as we continue to build Neptune Energy into the leading independent international E&P company.”