Page 10 - EurOil Week 20 2021

EurOil PERFORMANCE EurOil

Neptune suffers 22%

dip in output in Q1

NETHERLANDS NORTHWEST European producer Neptune dipped to $314.1mn from $355.2mn a year
Energy suffered a 22% year-on-year decline in before, although free cash flow (FCF) surged
The company has also oil and gas output in the first quarter as a result to $93.6mn. The company became more lever-
reported progress at its of outages across its portfolio. aged, with net debt rising to $1.96bn at the end of
hydrogen projects. The company’s supply averaged 125,700 bar- March from $1.46bn a year earlier, while its net
rels of oil equivalent per day in the three-month debt to EBITDAX ratio increased to 2.11 from
period, versus 162,100 boepd a year earlier. Nep- 0.99.
tune was hit by the closure of the Equinor-oper-
ated Snohvit field last autumn after a fire broke Blue and green hydrogen
out at the Hammerfest LNG plant that receives In its results, Neptune said it was making pro-
its gas. There was also a planned shutdown of the gress with its PosHYdon offshore green hydro-
Jangkrik FPU in Indonesia in January, as part of gen pilot project in the Dutch North Sea and its
the Merakes development programme, and an DelpHYnus blue hydrogen project in the UK.
outage at the Touat field in Algeria. The PosHydon project envisages the instal-
Announcing its results, Neptune said it lation of a 1-MW electrolyser, powered by wind
expected to increase production “materially” in energy, at the Q13a platform in the Dutch North
the fourth quarter, thanks to first flow from the Sea operated by Neptune. The initiative is backed
Duva field. When including production-equiv- by Dutch gas grid operator Gasunie; Nexstep,
alent “insurance” as a result of Snohvit closure, the Dutch association for decommissioning and
Neptune’s output in the first quarter was 139,000 re-use; and TNO, the Netherlands’ organisation
boepd, it said. for applied scientific research.
Neptune also brought on stream the Gjoa P1 Neptune expects to finalise the consortium
project offshore Norway in the first quarter, and agreement for PosHYdon in the second quarter
the Merakes development in Indonesia is now and start a topside feasibility study. Meanwhile in
operational, CEO Jim House said. the UK, it has applied to the Oil and Gas Author-
“We remain on track to deliver material pro- ity (OGA) for a CO2 appraisal and storage
duction growth, while generating strong cash licence in the south North Sea near its Cygnus
flows that will support further long-term port- gas facilities as part of the DelpHYnus scheme.
folio development,” House said. “The proposed DelpHYnus development
Despite the drop in output, Neptune’s core provides a CO2 transport and storage solution
earnings were stable in the first quarter thanks to for the South Humber industrial area, together
higher prices. While its operating costs grew to with production facilities for low carbon hydro-
$10.1 per boe from $8.9, average realised prices gen using natural gas from the grid,” Neptune
climbed to $60.8 per barrel for oil, up from $47.1 said. “Neptune has proposed an ambitious work
a year before, and $6.1 per 1,000 cubic feet for programme for the appraisal phase of the project
gas, up from $4.1, and is in discussions with potential partners for
Neptune’s post-tax cash flow from operations the hydrogen plant.” ™

P10 www. NEWSBASE .com Week 20 20•May•2021