Ithaca Energy reported its 1Q 2014 profit after tax increased by approximately 370% to $16.4 million from $3.5 million in the same quarter of 2013, equating to earnings per share of $0.05 (Q1 2013: $0.01)
The company’s cashflow from operations was $43.7 million, an increase from $34.8 million in 1Q 2013, resulting in cashflow per share of $0.13 (Q1 2013: $0.13). Revenue increased by $39.8 million from Q1 2013 to $99.6 million (Q1 2013: $59.8 million). This was primarily driven by an increase in oil sales volumes coupled with a small realised oil price increase.
Oil sales volumes increased primarily due to the inclusion of sales from the Dons and Causeway fields following the acquisition of Valiant, partially offset by lower volumes from the Beatrice and Jacky fields in the UK North Sea.
As for its production, Ithaca said its average output in Q1-2014 was 9,222 barrels of oil equivalent per day (“boepd”), 95% oil, in line with forecast performance given shutdowns on the Cook and Beatrice fields during the quarter.
Total 2014 production guidance remains unchanged in the range of 11,000 to 13,000 boepd, approximately 95% oil, the company added in its quarterly report.
Graham Forbes, Chief Financial Officer, said: “Earnings of $16 million represent satisfactory financial results for the first quarter, with the Company on-track to deliver the anticipated step-up in operating cashflows over the coming months as the various 2014 production enhancement projects are completed.”