Kistos narrows loss, sets Hole House gas storage project in motion

(Alliance News) - Kistos Holdings PLC on Tuesday said it narrowed its half-year loss despite weaker revenue, while reaffirming production guidance and approving investment in a UK gas storage project.

The energy company with offshore and onshore assets in the UK, Norway, and the Netherlands reported a pretax loss of USD6.9 million for the six months to June 30, narrowed from USD40.3 million a year earlier. Revenue fell 22% to USD87.9 million from USD113.3 million.

Production averaged 6,200 barrels of oil equivalent per day, down from 8,400 boepd the year before. The decline reflected lower output in the UK and Netherlands, partly offset by new volumes from the Balder Future project in Norway, which achieved first oil in June.

Despite the dip in first-half output, Kistos said it remains on track to deliver 8,000 to 9,000 boepd for the full year.

Chair Andrew Austin said: "The completion of Balder Future marks a pivotal event for Kistos. It diversifies our production profile and rebalances our hydrocarbon mix, while also releasing capital to support growth across other areas of the business."

Kistos also confirmed it has reached a final investment decision to recommission the Hole House gas storage site in the UK. Supported by third-party financing, the project will lift working capacity by 63%, the company said, and improve the country's "energy resilience".

In Norway, the company also sanctioned Balder phase VI, targeting about 1.5 million barrels of oil equivalent, while drilling continues on Balder phase V. In the UK, first gas from the Victory field remains on schedule for late 2025.

Kistos ended June with USD104 million in cash, including USD20 million in restricted funds, and adjusted net debt of USD86 million, little changed from USD89 million a year earlier.

Shares in Kistos were up 1.5% to 166.40 pence each in London on Tuesday morning.

By Eva Castanedo, Alliance News reporter

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