Hurricane Energy share price edges lower despite first revenues in half-year results
The British oil company released its first financials to include revenue on Friday thanks to its Lancaster start-up.
Hurricane Energy released its half-year results on Friday morning and are the oil company’s first set of financial to include revenue.
The company has sold more than 1.6 million barrels of oil across four cargoes thanks to its Lancaster start-up operation producing an average of 14,100 barrels of oil a day, Hurricane Energy CEO Robert Trice said.
‘Achieving first oil on schedule and on budget is a remarkable achievement and a huge credit to our operating team, our partners and contractors,’ Trice said.
Despite publishing its first set of financials to include revenue, Hurricane Energy saw its share price slide as much as 4% on early morning trading on Friday, with the stock sitting at 46.56p a share as of 10:20 GMT.
Hurricane Energy results: key figures
Over the last six months of trading, the company recognised revenue for the first time relating to a single cargo of crude oil sold, resulting in the business recording an operating profit of $1.2 million, compared to a loss of $4.7 million in the same period last year.
Hurricane Energy recorded a loss after tax of $21.2 million in its latest set of financials, a marked improvement from the $75.1 million it recorded this time last year.
Lancaster reservoir exceed expectations
Hurricane Energy’s latest set of results provide it with financial security gained from production from its Lancaster field’s early production system (EPS) and has given insight to the company on how it will develop future sites like its Rona Ridge resource.
‘Throughout the start-up phase and following first oil, the reservoir has performed at the higher end of expectations. However, we remain cognisant that it will take at least six months of steady state production before we are able to evaluate the validity of our reservoir model,’ Trice added.
Looking ahead, Hurricane Energy expects its Lancaster EPS to generate full-year production of over 2.8 million barrels of oil. Meanwhile, its third well at its Warwick West development is due to be spudded later this year.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.