Maersk Oil: Production rises in 1Q. Profit at $346M
Danish oil company Maersk Oil made a profit of $346m million in the first quarter of 2014, in line with $346 million earned in 1Q 2013.
The result is positively affected by average entitlement production of 256,000 boepd ( 1Q 2013: 239,000 boepd) offset by lower average oil prices of $108 per barrel (1Q 2013: $112 per barrel).
A continued focus in Q1 was to mature the portfolio of major developments. The development concept was selected in February for Johan Sverdrup in Norway and the Culzean project in the UK is progressing well towards
selection of the development concept later this year
Exploration costs were $173 million compared to $235 million in the first quarter of 2013, with the completion of three exploration and appraisal wells. The wells included one successful appraisal well at Johan Sverdrup in Norway.
Cash flow from operating activities was $734 million ($1.2 billion) and cash flow used for capital expenditure was $479 million ($412 million).
Maersk Oil expectations for 2014 remain unchanged with a result below 2013 ($1.0 billion), based on an oil price of USD 104 per barrel.
Maersk Oil’s entitlement production is still expected to be above 240,000 boepd (235,000 boepd) and as previously guided higher in Q1 and Q4, whereas planned shutdowns will result in lower production in Q2 and Q3.
Exploration costs are now expected to be slightly below USD 1.0bn