Company name Kuwait Energy PLC
Headline Financial Statements for 1st Half 2017


RNS Number : 2608S
Kuwait Energy PLC
29 September 2017
 

 

Kuwait Energy Group plc

Consolidated Financial Statements for the Six-Month Period Ending 30 June 2017

Kuwait, 29 September 2017: The Board of Directors of Kuwait Energy plc have approved the Management consolidated financial statements of the Group - for the six months period ended 30 June 2017. Please click on the link below to view the document:

 

http://www.kuwaitenergy.co/Frontend/KEC/FlipBook/290920170606492523/index.html

 

Dr Mansour Aboukhamseen, Group Executive Chairman, had this to say about the Group's half year results:

 

"On the back of a recovering global market and prudent financial management, I am pleased to announce that Kuwait Energy is reporting a net profit for the period. Despite the decline in oil prices during Q2 2017, we recorded a 1H 2017 net profit of US$5.7 million and a positive cashflow of US$62.0 million.

 

Our finances reflect the continued growth in the Company's operations, and although global oil prices fell by around 20% in the second quarter of the year we remained profitable, a testimony to our naturally hedged Iraqi production, which continues to increase, reflected in the 47% increase in revenues - in comparison to the same period last year - and a healthy cash balance in excess of US$67.0 million.

 

Earlier this month, oil prices reached highs not seen for over 2 years which is key to improving market sentiment towards the sector. However, as our growth throughout the period shows - by focusing on our Iraqi operations - we are protected against oil price fluctuations, allowing us to sustain growth and a strong balance sheet even under volatile market conditions.

 

In Iraq, we are paid regularly in the form of assigned crude shipments. The increase in our Iraqi production is now enabling us to take larger crude liftings than before. With the additional wells coming on stream over the coming months, these shipments will be more frequent adding to our cashflow growth. We are currently loading our largest Iraqi crude shipment and expect to receive the payment before the end of October 2017.

 

During the reporting period, we also completed the 20% revenue Working Interest (WI) Farm-out of our Siba asset to our key regional partner, the Egyptian General Petroleum Corporation (EGPC). This piece of portfolio management not only improves our cashflow but also strengthens our ties with one of our key stakeholders. Furthermore, Qatar First Bank (QFB); one of the convertible loan holders, have formally confirmed their position in converting the full principal amount and most of the associated premium at the time of conversion.

 

Kuwait Energy, as shown by these results, continues to grow financially and operationally which is testament to the Company's leadership under our CEO, Sara Akbar. I would like to utilise this opportunity to re-stress that the Company remains committed to creating a liquidity event, in particular a London listing, and we will continue to monitor and assess the market for the optimal opportunity."

-ENDS-

Contact Details:

 

Hussain Al Mosawy

Tel: +965 2576 7722

Vice President - Strategic Corporate Affairs

E-mail: Hussain.Almosawy@kec.com.kw

Lawrence Hafez

Tel: +965 2576 7723

Senior Investor Affairs Officer

E-mail: Lawrence.Hafez@kec.com.kw

 

Notes to Editors:

 

Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development and production of hydrocarbons across the MENA region. Since Kuwait Energy's establishment in 2005, the company has built up a diversified, majority operated asset portfolio. The company's current portfolio consists of ten oil and gas assets across Egypt, Iraq, Yemen and Oman of which it operates seven.

 

Kuwait Energy has a proven record of working in the MENA region and is recognised by governments, peers and local communities as a trusted and capable partner. Kuwait Energy's audited 2P working interest reserves as at year-end 2016 stand at 810 mmboe and average daily working interest production for 1H 2017 stood at 27,405 boepd.

 

Kuwait Energy's registered office is located in Jersey, its head office is in Bahrain, its regional operational hub is in Kuwait and the company has area offices in Basra, Baghdad, Cairo and Sana'a.

 

For further information, please visit the Kuwait Energy website: www.kuwaitenergy.co 

 

 

 

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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