Afren delivered record revenues and cash flows in the period driven by strong production performance from the Ebok and Okoro fields, offshore Nigeria, benefitting from continued high oil prices.
Net working interest production in the year increased to 47,112 boepd representing a like-for-like year-on-year increase of 8%. Turnover increased by 5% to US$1,644 million (2012: US$1,571 million) with profits after tax increasing by 151% to US$475 million.
Cash flow from operations (including movements in working capital) during the period increased by circa 25% to US$1,216 million (2012: US$974 million). Current production levels and growth projects will ensure strong cash flow in 2014 and beyond, although net equity share of production will be reduced by cost recovery at Ebok.
Commenting today, Osman Shahenshah, Chief Executive, said: “2013 has been another excellent year for Afren, with a combination of record revenues and cash flows, production ahead of guidance and industry leading exploration success. The highlight of our exploration campaign was the play opening discovery at Ogo, offshore Nigeria, one of the largest global discoveries in 2013. We have continued to grow and de-risk our portfolio with a 2P reserves replacement ratio of 201%.
Looking ahead, we will maintain our strategy of allocating capital to the highest cash return opportunities that will provide the necessary funding to continue to de-risk our material resource base. Supported by a strengthened balance sheet, a track record of project delivery and exploration success, we are well placed to continue to create significant value for our shareholders.”