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(Alliance News) - Gulf Keystone Petroleum Ltd on Wednesday said it swung to profit in 2021, profiting from an increase in production and a recovery in oil prices.
For 2021, it reported a pretax profit of USD163.7 million, swinging from a loss of USD47.0 million the year before. Revenue almost tripled to USD301.4 million from USD108.4 million in 2020, the Bermuda-based oil and gas company operating in Iraq said.
The company said average realised oil prices surged to USD49.7 a barrel in 2021 from USD20.9 a barrel in 2020.
For 2022, the company is so far proposing USD90 million in dividends. This includes an interim dividend of USD65 million on May 13 and an ordinary annual dividend of USD25 million to be paid on June 24.
In total, 2021 dividends paid stood at USD100 million, including a 2020 annual dividend of USD25 million.
For 2022, the company expects an average gross production of 44,000 to 50,000 barrels of oil per day, up from 43,440 in 2021. So far, on average the gross production stood at 45,500, the company explained.
"With a 19% increase in gross average production to 43,440 barrels of oil per day, our leverage to the recovery in oil prices and continued cost and capital discipline, we generated substantial revenue and free cash flow," said Chief Executive Officer Jon Harris.
The firm is targeting a gross operating expenses guidance of USD2.9 to USD3.3 per barrel, up from USD2.7 in 2021.
Gulf Keystone Petroleum shares were 7.7% higher at 247.10 pence each in London on Wednesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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