Profits soar at Hurricane as oil prices rocket
By Abigail Townsend
Date: Friday 26 May 2023
(Sharecast News) - North Sea specialist Hurricane Energy reported a surge in annual profits on Friday, as oil prices hit record highs.
The Aim-listed firm, which is in the process of being acquired by Prax Exploration & Production, said sales revenues jumped to $310.8m from $240.5m a year previously, despite a dip in production.
The average daily production rate for the year to 31 December fell to 8,500 barrels of oil per day from 10,300 bopd in 2021, due to natural decline.
The average sales price realised soared, however, to $96.3 per barrel - from $67.3 a year previously - as Russia's invasion of Ukraine caused energy prices worldwide to spike.
Underlying pre-tax profits surged to $113.6m, from $10.8m.
Anthony Maris, chief executive, said: "2022 has been both very challenging and a highly successful year for Hurricane, while also an extraordinary volatile period, for our sector.
"The resulting high oil price in the year, combined with outstanding operational performance at the Lancaster field, strengthened Hurricane's finances."
Hurricane had initially wanted to further develop the Lancaster oil field, which is around 100km west of Shetland. But it did not receive backing from the regulator, the North Sea Transition Authority.
Following pressure from activist investor Crystal Amber - its biggest shareholder - Hurricane then launched a formal sale process and in March accepted an offer worth up to £249m from Prax.
As at 1115 BST, shares in Hurricane were down 2% at 7.62p.
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