Neptune Energy today announced its financial results for the three months ended 31 March 2023.

Good safety performance, new projects coming online

• Improved safety performance, with total recordable injury rate lower at 1.82 per million hours worked.
• Q1 production of 142.1 kboepd, successful start-up of Fenja (Norway) in April adding ~10 kboepd of production at plateau.
• Seagull (UK) close to completion with start-up in July, gas exports from Touat to restart in Q3 2023.

Progress on CCS development pipeline, industry leading ESG ratings

• CCS licence application submitted for Trudvang project (Norway), L10 CCS (Netherlands) application to follow in Q2. 
• Gudrun electrification on track to come online in the fourth quarter.
• Industry leading Sustainalytics ESG rating of 21.4, ranked in top 3% of all global oil and gas companies rated.

Robust financial performance, further deleveraging

• Post-tax operating cash flow of $347.5 million, EBITDAX of $1,302.2 million, underlying operating profit of $739.6 million.
• Further deleveraging with net debt to EBITDAX of 0.37 times at 31 March 2023. Cash taxes of $393.7 million.
• Annual RBL redetermination completed providing borrowing base of $1.4 billion, RBL refinancing by end of Q2 2023.

Disciplined capital allocation, focused on shorter-term returns

• Adjusted development capex of $121.8 million in Q1 2023, focused mainly on project completions in Norway and UK. 
• FY 2023 guidance lowered for post-tax operating cash flow to $1.6-1.8 billion, cash tax guidance unchanged at ~$2.0 billion.
• Focus on shorter-cycle projects and near-term returns in countries with favourable investment climate. 

Neptune Energy’s Chief Executive Officer, Pete Jones, said: 
“Neptune delivered a good operational and financial performance in the first quarter, with higher production and improvements in health and safety. Project start-ups are expected to drive further production growth as we progress through the year, including from the Neptune-operated Fenja and Seagull developments.

“Our new energy strategy continues to develop, with good progress in the first quarter as we mature our existing opportunities and target important milestones in the second quarter. Our strong ESG performance and disclosure was again recognised by Sustainalytics awarding us an industry leading ESG rating and ranking us in the top 3% of all oil and gas producers.” 

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