Second Quarter 2014 Activity Report
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1.
E
XECUTIVE
S
UMMARY
:
Second Quarter 2014 Activity Report for the period ending 30 June 2014
Kuwait Energy is continuing to pursue its strategy of focusing on the MENA region, where it has established
strong presence and operational track record. To this effect, the Company is undergoing a rigorous process of
rationalizing its portfolio in Eurasia and Pakistan with the intention to exit these geographies and focus its
activities in the MENA region. In 2013 the Group resolved to dispose of its operations in Russia and Ukraine,
classifying them as discontinued operations in the Group’s financial statements. In April, Kuwait Energy finalized
the sale of its Ukraine assets with net proceeds of US$5.0 million. Currently, the Group is engaged in active
negotiations in respect of the sale of its assets in Russia and expects to complete the sale during the third
quarter of 2014.
Comparative Performance at a Glance
Quarterly Comparison
Q2 2014
Q1 2014
Change %
Production*
BOEPD
23,720
22,467
5.6%
Revenue**
US$ Million
72.3
67.3
7.4%
Corresponding Period
Q2 2014
Q2 2013
Change %
Production*
BOEPD
23,720
21,770
9.0%
Revenue**
US$ Million
72.3
64.2
12.6%
*
Production reported is daily average working interest.
** Revenue reported is net of government take under the terms of the Group’s licences and is based on management accounts
which are unaudited.
*** The financial numbers for 2013 are restated on account of (a) Eurasia assets being classified as ‘held for sale’ as per 2013
audited accounts (b) Oman numbers being excluded due to application of IFRS 11 applicable from 1 Jan 2014.
**** Russia and Ukraine are discontinued operations and hence have been excluded from the production numbers in the above
table. The daily average Q2 2014 production for Russia was 721 boepd and for Ukraine was 30 boepd which was sold in April.
Quarterly Production and Sales Summary – Second Quarter 2014
Kuwait Energy achieved a quarterly average daily working interest production and revenue of 23,720 barrels
of oil equivalent per day in (boepd) and US$72.3 million respectively. The Group’s average daily working
interest production is 5.6% higher and revenue is 7.4% higher than in the previous quarter.
Q2 2014 average daily working interest production as compared to the corresponding period a year ago has
increased by 9.0%.
Q2 2014 revenue as compared to the corresponding period a year ago has increased by 12.6%.