Ithaca Energy Limited is pleased to announce its financial results for the nine months ended 30 September 2020 (“Q3 YTD 2020”).
- Strong operational performance with Vorlich development on production in November 2020, limited disruption arising from Covid-19 related restrictions
- Production of 68 thousand barrels of oil equivalent per day (“kboe/d”), 61% liquids, during the first nine months of 2020
- Forecast 2020 production anticipated to be at the top end of the 63-68 kboe/d guidance range
- Unit operating costs of $15/boe Q3 YTD 2020, down from $17/boe pro-forma 2019
- EBITDAX of $543 million Q3 YTD 2020, including realised commodity hedging gains of $303 million
- During the year the company re-set the majority of its 2021/22 oil hedges, maintaining underlying hedge volumes with swaps at the prevailing forward curve – as a result, in addition to the EBITDAX of $543 million, $155 million of cash flow has been accelerated into 2020 resulting in Q3 YTD Cashflow from Operations of $701 million
- 22 million barrels of oil equivalent (55% oil) hedged from the start of October 2020 into 2023 at an average price floor of $48/bbl oil and 46p/therm gas after reflecting the impact of the re-set
- Net debt at 30 September 2020 was $1.2 billion, down from $1.5 billion at year-end 2019
- Results include the $798 million post-tax non-cash impairment, primarily arising in Q1-2020 from lower commodity prices
- Decisive actions taken at the start of the year to manage the Covid-19 pandemic and sharp fall in oil prices – forecast 2020 capital expenditure halved to approximately $125 million and unit operating expenditure reduced by approximately 15% to $15/boe
- Measures being taken to recommence some of the deferred investment programmes, with capital expenditure forecast to be in the range of $125 to $135 million.
- Taking into account solid year to date operational performance, full year 2020 production is anticipated to be towards the top end of the guidance range of the 63-68 kboe/d issued when the potential impact of Covid-19 restrictions were incorporated into the outlook
- Mid-year independent reserves evaluation completed with proven and probable reserves (“2P”) and resources (“2C”) broadly unchanged at 258 million barrels of oil equivalent (“MMboe”), after taking into account production in H1-2020, despite a reduction in forecast future commodity prices