Capricorn returns to profit as revenue rises despite lower production

Capricorn Energy ($CNE) reported first-half pre-tax profit from continuing operations of $56.2 million, reversing a $7.5 million loss. Revenue increased 68% to $100.5 million. Production averaged 19,337 barrels of oil equivalent per day, below the prior year’s 20,342, meaning the revenue improvement should not be interpreted as a similar expansion in physical output.

The company now expects full-year production above the 20,000-barrel midpoint of its existing 18,000–22,000 guidance range, supported by new wells brought on stream after the half-year end. Capital spending is expected toward the top of its $85–95 million range. Management’s operating-cost guidance remains $5–7 per barrel of oil equivalent. The annual targets remain forecasts rather than results already achieved.

Sources:

• Alliance News / AJ Bell — Capricorn results and guidance