Jadestone Energy, an oil and gas company focusing on the Asia-Pacific region, has announced a decrease in first-half revenue due to lower oil prices and reduced production. Despite these challenges, the company remains confident in its 2023 production, operating cost, and capital expenditure guidance.
Revenue and Operating Expenses
In the first half of the year, Jadestone Energy experienced a decline in revenue from $225.6 million to $86.7 million. This decrease can largely be attributed to a drop in average oil price realization, which decreased from $109.5 per barrel to $86.2 per barrel compared to the previous year. Additionally, the company saw an increase in underlying operating expenses from $69.8 million to $87.1 million.
Production Performance
Group production for Jadestone Energy fell from 15,008 barrels of oil equivalent per day to 12,300 barrels per day during the first half of the year. The decrease was mainly influenced by the temporary shutdown of production at Montara until March and lower production at the Peninsular Malaysia assets due to natural decline. However, this was partly offset by higher production at Stag and contributions from recent acquisitions.
Full-Year Guidance
Despite the challenges faced in the first half of the year, Jadestone Energy maintains its full-year guidance for group production, underlying operating costs, and capital expenditure. The company aims to achieve a group production range of 13,500-17,000 barrels of oil equivalent per day. The estimated range for underlying operating costs is $180 million-$210 million, and capital expenditure is expected to fall within $110 million-$140 million.
Stock Performance
As of 0851 GMT, Jadestone Energy’s shares were down 1.25 pence, or 3.7%, at 32.75 pence.
