Kistos Holdings plc’s increase in profits has failed to deter the company from reviewing opportunities outside the UK and Netherlands to avoid “unstable fiscal regimes”.
FINANCES
Full year 2022 results showed operating profits of €276.3 million (2021: loss of €62.8m) and pre-tax profits of €254.1m (2021: loss before tax of €73.9m).
Taxes of €228m, which the company said resulted in an effective tax rate for 2022 of 89.8%, includes the UK energy profits levy and the EU solidarity contribution tax in the Netherlands.
Kistos held cash balances €212m (31 December 2021: €77m) and net cash of €130m (31 December 2021: net debt of €73m).
The company repaid 46% of debt by repurchasing €68m Nordic bonds, leaving €82m outstanding.
Capital expenditure on a cash basis, excluding business acquisitions, amounted to €19.5m.
OUTLOOK
Kistos said that it was now ready to sanction the Edradour West and Glendronach developments, subject to its joint venture partner’s agreement.
The company aims to use the investment allowance under the EPL and, if approved, expects to begin Edradour West development programme by the end of 2023.
Kistos last year acquired a 20% working interest for €165m from TotalEnergies in the producing Laggan, Tormore, Edradour and Glenlivet gas fields, west of Shetland.
The company also acquired a 20% interest in the undeveloped Glendronach gas field, a 25% interest in block 206/4a, which contains the 638 bcf (operator’s gross P50 resource estimate) Benriach prospect, and a 20% interest in the Shetland gas plant.
JURISDICTIONS
Executive chairman Andrew Austin added that Kistos’ “accelerated evolution” during 2022 had been driven by “targeted value-accretive acquisitions”.
“From a standing start in 2020, we have built an excellent platform, and we will seek to deploy further capital in the right opportunities or make distributions to shareholders.
“The instability of the fiscal regimes in which we operate has prompted us to review our investment options and, as we have already demonstrated with our entry into Norway, our pipeline of business development opportunities includes assets in jurisdictions other than the UK and the Netherlands.”