Strong year helps Horizon Oil report gross revenue of K468mil

Business

Horizon Oil Ltd has capped a strong year, with its December quarterly report revealing gross revenues of US$139.1 million (K468mil) for calendar year 2018, an increase of 88 per cent over the prior calendar year.
The increased revenue reflects a 45 per cent increase in oil sales during 2018, to a total of over two million barrels, and an improved commodity price environment.
Net operating cash flow was up 70 per cent over the same period to US$95.6 million (K322mil).
Horizon Oil chief executive Michael Sheridan, pictured, noted that the “strong free cash flow enabled the accelerated reduction of the company’s debt”.
The company’s net debt was reduced by a further US$10.4 million (K35mil) in the quarter to US$64.2 million (K216mil) at the end of 2018.
“Horizon Oil is well positioned for 2019 with continued strong performance from its conventional oil fields in China and New Zealand,” Sheridan said. In Papua New Guinea, Sheridan pointed to recent Government statements reinforcing requirements under its natural gas policy for third-party access to pipeline infrastructure, on reasonable commercial terms, as being a positive for Horizon Oil, which operates condensate-rich gas resources adjacent to ExxonMobil’s planned P’nyang to Kutubu pipeline. While such potential commercialisation opportunities may eventuate, Horizon Oil believes it remains appropriate for it and its joint venture partners to continue progressing their independent development plans for their Papua New Guinea assets, which include the Stanley, Elevala/Ketu and Ubuntu fields in the foreland region of Western.