News Column

Kuwait Energy Co. posts USD 64mln in profits for Q1

May 19, 2014



Chief Executive Officer of Kuwait Energy Sara Akbar



KUWAIT, May 18 (KUNA) -- Kuwait Energy, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, has posted USD 64 million in profits for the first quarter of 2014.

In a press release issued Sunday, the company stated that its revenues have climbed by 17.4 percent in Q 1, 2014 compared with the corresponding period of 2013.

"We are pleased with ending the first quarter of the year with good performances," commented Chief Executive Officer of Kuwait Energy Sara Akbar.

"This only makes us look forward to increased operational success in 2014 as we move forward with our strategy, which is to focus on our core operations in the MENA region." The company also unveiled that the average daily working interest production increased 10.6 percent to 23,759 barrels of oil equivalent per day (boepd) compared to the corresponding period of last year.

As to comparisons to the previous quarter, revenue and production are lower by 7.6 percent and 1.0 percent respectively, it added.

By the end of Q1 2014, the outstanding receivables were USD 134 million as a result of collecting USD 33 million during the first quarter 2014.

The statement noted that the main development activities during Q1 2014 included the drilling of 17 development wells (10 in Oman and 7 in Egypt). USD 39.0 million in development expenditure was mainly spent on the acquisition and processing of 3D seismic data and demining on Siba, Iraq. Exploration expenditure during Q1 2014 was USD 8.7 million primarily spent on exploration drilling in Egypt and Iraq.

On the strategic front, Kuwait Energy continues with its strategy of focusing on the MENA region, where it has established strong presence and operational track record.

To this effect, the Company said that it is undergoing a rigorous process of rationalizing its portfolio in Eurasia and Pakistan with the intention to exit and focus its activities in the MENA region.

Kuwait Energy is also looking into farming out some of the single asset exposure to achieve better risk profile and optimize its capital expenditure program. To rebalance country exposure, the Company is currently actively pursuing strategic partners for its existing assets via a farm-out process in countries such as Iraq. (end) asj.ibi

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Source: Kuwait News Agency


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