Capricorn Energy delivers upbeat outlook, keeps FY guidance

The Egypt-focused producer formerly known as Cairn Energy also gave an upbeat outlook, as higher collections from the Egyptian government – which rose 86% year-on-year – enabled the firm to resume investment activity.

The company said it remains on track to meet guidance of 20,000 to 24,000 barrels of oil equivalents per day, which it said reflects robust asset performance and the resumption of development drilling. Average production over the year to date was 24,700 boepd.

The company reported a profit after tax for the first half of $1.8m, compared with a loss of $65m in the first half of last year, despite revenues from production falling to $80.3m from $98.3m.

"I am delighted to report that Capricorn's clear value opportunity offering has been confirmed by the company's production performance in Egypt indicating that we are on track to meet guidance targets for the full year," said chief executive Randy Neely.

"Maximising the value of the company was the driving force behind the wholesale restructure of the business early last year, and this strategy has transformed Capricorn into the cash flow focused energy producer it is today."

Capricorn hailed a "material improvement" in collections against its accounts receivable with cash receipts of $93m compared with $50m a year earlier.

Neely said he welcomed the consistency of regular payments from the government, which "gives us confidence that Capricorn will continue to collect receivables as we move forward with a focus on production enhancement, asset optimisation and value creation".

The stock was up 6.3% at 230.74p by 0942 BST.