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(Alliance News) - Kistos Holdings PLC on Wednesday blamed operational shifts and lower gas prices for a decrease in production and earnings.
The low carbon intensity energy producer with natural gas holdings in the UK, Netherlands and Norway said 2023 pro forma production was on average 8,800 barrels of oil equivalent per day, falling from 10,900 boe/d in 2022.
Kistos said this reflected natural production decline from its UK and Dutch assets, unplanned production interruptions relating to third-party infrastructure in the Netherlands, partially offset by the inclusion of production from the Balder and Ringhorne areas in Norway.
In the 12 months to December, Kistos said adjusted pro forma earnings before interest, tax, depreciation and amortisation fell to EUR122 million from EUR517 million a year prior. The fall reflected the decrease in gas prices from 2022's high levels, Kistos said.
Kistos posted a pretax loss of EUR45.9 million, swinging from a pretax profit of EUR254.1 million, while revenue fell to EUR207.0 million from EUR411.5 million.
Despite this, Kistos forecast increased 2024 production based on it's acquisition of Mime Petroleum AS.
The Mime acquisition, completed in May 2023, added 24 million barrels of oil equivalent per day of 2P, proven and probable reserves, Kistos said, and in excess of 2,000 boe/d of production. Material future production upside is also expected from the Balder Future development, Kistos said.
Total year-end 2P reserves rose to 27.9 mmboe from 12.7 mmboe at the end of 2022.
In particular, Kistos highlighted production from newly acquired Norway assets increased 50% from 312,000 boe in the first half of 2023 to 478,000 boe in the second half of the year.
Looking ahead, Kistos said it is targetting around 140 mmboe gross at its Balder Future Project in Norway.
It said it would continue to explore "value-accretive opportunities in the traditional energy sector, despite challenging fiscal environments, and also in the energy transition space."
Executive Chair Andrew Austin said despite lower gas prices and a stricter UK fiscal environment, 2023 displayed "the group's ability to identify opportunities outside of its offshore production portfolio and broaden its sources of revenue."
Shares in Kistos closed down 11% at 155.00 pence in London on Monday.
By Aidan Lane, Alliance News reporter
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