Nostrum Ebitda Down on Output Decline
Core earnings (Ebitda) at Kazakhstan-focused Nostrum Oil & Gas slumped 16% yr/yr to $158.3mn in the first nine months of 2019, the London-listed company said in a statement on November 19.
Revenues were down almost 20% at $250.3mn, owing to production decline, although operating cash flow grew by nearly 6% to $160.2mn.
“The first nine months of 2019 have been very challenging,” CEO Kai-Uwe Kessel commented. “We have seen quicker than expected decline in our core producing reservoirs resulting in a reduction in our sales guidance for 2019 by 1,000 boepd.”
Nostrum, whose core asset is the Chinarevskoye oil and gas field in western Kazakhstan, has struggled with falling output for several years, owing to operational setbacks including the delayed completed of a new gas treatment unit. Nostrum finally announced the unit’s commissioning last month.
The company launched a strategic review of its business in June to find ways of maximising shareholder value.
“We hope to have concluded this process along with the conclusions from the reports on our reservoirs by year end,” Kessel said.