Kistos reports pandemic rebound powered by soaring oil and gas prices
Kistos has reported robust earnings for the first six months of the year, boosted by increased production and near-record gas prices.
The independent energy company reported a 745 per cent rise in revenues and €285.1m and a 768 per cent increase in EBITDA to €261.0m.
This reflects its healthy rebound from the pandemic and reduced demand for supplies, with cash balances on 30 June 2022 of €148.4m.
It revealed a 105 per cent spike in gas production, and a near three hundred per cent spike in average realised gas prices.
During the six months of trading, the gas price climbed to €82.65 per MWh – a sharp spike on €20.71 per MWh, the price of gas only twelve months ago.
Meanwhile, unit operating expenditure remained very low during the period at €2.28 per MWh or €5.56 per MWh on a pro forma basis.
Its upcoming development and exploration programmes will utilise the investment allowance under the terms of the Energy Profits Levy.
Kistos’ Glendronach development on track to be sanctioned by year-end 2022, with production anticipated to commence by end 2024.
Andrew Austin, executive chairman of Kistos, said: “Our strong cash generation for the first half of the year has been driven both by operational excellence across our assets in the Netherlands, and the high demand for natural gas across Europe. This has further strengthened our already robust balance sheet and will allow us to continue to capitalise on the exploration, appraisal, and development opportunities within our portfolio.”
The company pushed for a merger with domestic rival Serica Energy this year, however both parties were unable to agree terms for a deal despite multiple bids from each company.
Commenting on the setback, Austin said: “Our recent Proposed Combination with Serica Energy was a clear demonstration of our ambition, and while this proposal did not progress, our appetite for M&A remains core to Kistos’ ethos of delivering material value for our stakeholders.”