Neptune Energy announces Q1 2022 results

Neptune Energy today announced its financial results for the three months ended 31 March 2022.

Good operational performance, with production in line with guidance

• Improvement in our process safety event rate, down to 0.62 per million hours worked.
• Q1 production of 133.7 kboepd, in line with expectations. FY guidance of 135-145 kboepd maintained.
• Snøhvit (Norway) on schedule to restart in May, temporary increase in gas production from Gjøa.

Investment aligned with energy security priorities

• Capex of $128.9 million in Q1 2022, supporting energy security in UK and Europe with c.47 kboepd of net additions in 2023.
• Discovery at Hamlet (Norway), located close to Gjøa.
• Sanctioned appraisal well at the significant Isabella (UK) discovery, drilling to commence in H2.

Continued progress with ESG, low carbon projects

• Industry-leading Sustainalytics ESG rating of 23.2. Ranked in top 3% of all global oil and gas producers rated.
• Finalising L10 CCS cooperation agreement with partners, aiming to progress project to FEED-ready by end of 2022.
• Gudrun electrification project on track for completion by year end.

Strong financial performance, higher tax charge

• Post-tax operating cash flow of $741.3 million, EBITDAX of $956.0 million and underlying operating profit of $795.5 million.
• Net debt to EBITDAX of 0.57 times at end of period, total available liquidity of $1.5 billion.
• FY guidance for post-tax operating cash flow increased to ~$2.0 billion and cash taxes to ~$1.4 billion.

Neptune Energy’s Chief Executive Officer, Pete Jones, said: “Neptune delivered strong operating and financial results in the first quarter, while continuing to invest in energy security across Europe. We will invest more than $700 million this year in new sources of supply, which will support the delivery of 47 kboepd of new production from next year.

“We continue to make progress with our low carbon strategy and are on track to complete the electrification of our second asset in Norway by the end of this year. CCS is key to us going beyond net zero by 2030 – and we are maturing existing opportunities, while evaluating additional possibilities in the UK, Norway and the Netherlands.”

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