Page 13 - MEOG Week 33

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barrels of heavy crude oil at IRENEX. Buyers can receive their cargo(es) up to three months a er the transaction, and the
delivery of the cargo(es) in other areas is subject to approval by the National Iranian oil Co.
shana
Decline in KPC’s
‘production’ capacity a
reality, says report
e decline in Kuwait Petroleum Corporation’s (KPC) current production capacity of 2.9 million barrels per day (down 750,000 bpd from the planned 3.65 million bpd in accordance with KPC plans and ambitions) has become a reality to be dealt with according to capabilities, reports Al- Qabas daily quoting senior oil sources.
Informed oil sources pointed out that
the KPC’s 2040 strategy for exploration and production stipulated that the production capacity will be 3.650 million barrels per day in 2020, up to 4.250 million barrels in 2040, but the production capacity did not exceed the barrier of 2.9 million barrels per day in 2019, as most of the company’s attempts to do good on this huge decline in production capacity has not succeeded, although the company’s production capacity has already exceeded the 3 million barrels per day in 2015.
e sources explained that this decline necessitated the intervention of the planning sector through radical amendments to
the 2040 strategy for exploration and production and the reduction targets relating to production a er the certainty that the production capacity cannot increase more
than 300 thousand barrels to reach an additional 3.2 million barrels over the next ve years.
e sources pointed out that the reduction of production capacity in the 2040 strategy will result in a reduction of the strategy for re ning petroleum products, otherwise the quantities required to be re ned in re neries inside and outside Kuwait will be 3.3 million barrels per day (2 million inside Kuwait +1.3 million abroad) and this is more than the actual production of the state.
e same sources criticized the weakness of the decision of the top KoC management saying this is an additional burden on
the process of reforming the problems of production capacity where executive leaders in the company fear the use of their powers in making decisions related to individual operations to be postponed such as these decisions until the weekly meeting of senior management.
arab tImes
serVICes
ADES announces half year results
ADES International Holding last week provided an update to the market on its preliminary, unaudited nancial highlights over the six months ending June 30, 2019 and con rms that it will be announcing its interim results on September 27, 2019.
Revenue increased to uS$219.9 million, supported by the completion of the acquisitions, up by 2.8 times compared to H1 2018 (uS$79.7 million), while Q2 2019
revenue increased to uS$111.3 million compared to Q1 2019 (uS$108.7 million), a quarter-on-quarter growth of 2.4%.
EBITDA increased to approximately uS$88.0 million re ecting a 40% margin, compared to H1 2018 (uS$37.8 million).
Cash and Cash Equivalents stood at uS$40.3 million as of 30 June 2019 compared to uS$23.6 million in Q1 2019 (31 December 2018: uS$130 million). Net Debt of uS$614.0 million, as of 30 June 2019, re ects a period of signi cant investment to upgrade existing assets, purchase new build rigs and complete the Weatherford acquisition. e Group expects H2 2019 free cash ow generation to improve.
In H1 2019, the Group secured new banking facilities and undertook a successful maiden 5-year bond issue which provided additional liquidity, headroom and nancial exibility. Additionally, to support business growth post acquisition, ADES replaced
the Letters of Guarantee associated with the Weatherford rigs. Due to these factors, nance charges (on a recurring basis) will be higher on a full year basis than expected. H1 2019 recurring nance charges for the Group are approximately uS$26.5 million.
ADES CEo Dr. Mohamed Farouk,
said: “ADES delivered a strong operational performance in the rst half of the year.
our results were driven by the increasing contributions from the newly acquired rigs and were further supported by the steady ramp up of utilisation rates. We will provide further detail alongside our interim results in September.”
ades
Week 33 20•August•2019
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