Kistos on track to hit guidance, but H1 profits sink

(Sharecast News) - Energy company Kistos said it remains firmly on track to hit its full-year production guidance after a period of "significant and transformational investment" in the first half, though results were significantly lower than last year. The North Sea-focused company reported an average production rate of 6,200 barrels of oil equivalents (boe) per day in the six months to 30 June, down 26% on the year before, with a slight improvement in output from Norway outweighed by heavy falls in the UK and Netherlands.

Revenues fell 22% to $87.9m, as an 18% slump in the average realised oil price to $67 a barrel was only partially offset by a 43% jump in the average realised gas price to $77/boe.

Adjusted EBITDA for the period totalled $23.7m, down 51% from last year, as unit opex increased to $42/boe from $29/boe due to lower production in the Netherlands and UK.

Nevertheless, the company remains upbeat: "The group is on track to meet our full-year production guidance of 8,000-9,000 boepd whilst upholding strong operational performance and unlocking the full potential of our existing asset base to deliver long-term value for shareholders," said executive chair Andrew Austin.

The stock, which has gained nearly 50% so far this year, was up 0.6% at 164.92p by 1234 BST.