Kuwait Energy sees 21 per cent rise in revenue

12 August 2013

Firm’s quarter-on-quarter earnings rose to $77.6m as production increased in Egypt

Kuwait Energy’s revenue increased 21.2 per cent quarter-on-quarter to $77.6m. Compared to the same period last year, revenue rose 51.8 per cent.

The firm’s production was up 37.3 per cent year-on-year to 23,221 barrels of oil equivalent a day (boe/d). The quarter-on-quarter increase was 7.6 per cent.

The privately owned company’s increases were primarily due to new contributions from the Shahad SE field in Egypt and the firm’s 15 per cent interest in Yemen’s Block 5, according to a statement by Kuwait Energy. Higher production was also recorded at the Yusr-38 ST and Yusr-60 wells in Egypt’s Area A.

At the end of the quarter, Kuwait Energy drew $110m from its $165m reserve-based lending facility from the World Bank’s International Finance Corporation (IFC) and Germany’s Deutsche Bank, in place to finance near-term capital activities.

It repaid its $25m term debt facility with Kuwait International Bank and signed a new, short-term facility of $15m with Qatar First Bank.

The company’s development and exploration expenditure during the quarter totalled $51.9m. Development was focused on Egypt, Yemen and Oman, while four exploration wells were drilled in Egypt and Latvia.

In Afghanistan, Kuwait Energy withdrew from a consortium negotiating exploration and production sharing contracts for hydrocarbon exploration licences in Block I (Sanduqli) and Block IV (Mazar-i-Sharif), but said it will continue to search for other investment opportunities in the country.

Kuwait Energy operates in Egypt, Yemen, Oman, Russia and Ukraine.

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