Neptune books 120% yr/yr EBITDA increase in Q2

Neptune Energy's second quarter EBITDAX skyrocketed by 120% yr/yr to reach $760.5mn, the company reported on August 11.

The company also reported a massive spike in core quarterly profit to $580.8mn from $147.3mn in the year ago period, reflecting surging realised prices for its oil and gas.

CEO Pete Jones commended a solid "operational and financial" performance that also saw Neptune make significant debt reductions, paying down $650mn over the first six months of the year. Neptune's net debt to EBITDAX ratio had fallen to 0.43 by the half-year mark, down from 1.95 at June-end 2021.

Neptune's founder and executive chairman Sam Laidlaw noted heightened energy security fears across global markets, and urged policy makers to avoid rash changes to the investment climate.

Perhaps in reference to the windfall taxes now levied in several European countries, Laidlaw argued stability was needed to justify significant new capex spends in fuel supplies.

Laidlaw said: "As countries around the world prioritise energy security, energy policy must support a stable and predictable investment climate to encourage new investment in additional sources of supply.

“Neptune continues to deliver its strategy of increasing production of lower carbon energy, while progressing plans to go beyond net zero through electrification and carbon capture and storage.”

Neptune Energy prides itself on low-emissions gas output, particularly from its Norwegian upstream holdings, which are billed as being far less carbon-intensive than global averages. During the six-month reporting period Neptune Energy benefited from the restart of Norway's Snohvit oil and gas field, which helped maintain net quarterly daily output at 113,600 boe/d, roughly the same as reported in Q2 2021.

Looking ahead, Neptune says upstream project launches across its portfolio will add 47,000 barrels of oil equivalent/day to net output before next year. In Algeria, the company is working towards the restart of export cargoes from Touat gas field, where it holds 65% interest in a JV with French energy company Engie. Exports from Touat, which is forecast to produce 450mn ft3/d at peak, are expected to resume "shortly", Neptune added.