UK-based oil company Premier Oil reported a net profit in 2018 of $133.4 million, on the back of record production.
Premier Oil, which in 2017 posted a loss of $253 million, said on Thursday it achieved record production of 80.5 kboepd in 2018, despite material asset sales.
Premier’s production was boosted by new output from the Catcher area in the North Sea. For comparison, in 2017, Premier Oil produced 75.0 kboepd.
Tony Durrant, Chief Executive Officer, said: “2018 saw higher production, positive free cash flow and a return to profitability. The Group is ahead of plans to restore balance sheet strength and remains focused on consistently delivering free cash flows.”
Total revenue from all operations increased to US$1,438.3 million, up from $1,102 million in 2017.
During the period, Premier completed the previously announced sales of its interest in the Kakap field, its 30 percent non-operated interest in the Esmond Transportation System (‘ETS’) and its interest in the Babbage Area.
Durrant said that that debt reduction remained a key corporate priority: “The Group’s strong operational performance supported by its low-cost base and a disciplined capex programme resulted in us generating material free cash flow during 2018. This, together with proceeds of US$73 million from selective disposals of non-core assets and the early exchange of the convertible bond, resulted in a reduction of net debt by US$393 million to US$2.33 billion, ahead of the plan agreed with our lenders.”
Offshore Energy Today Staff