Nostrum Oil & Gas PLC
LSE:NOG
Nostrum Oil & Gas PLC
Nostrum Oil & Gas Plc operates as a holding company which engages in the production, development, and exploration of oil and gas in the pre-Caspian Basin. The company is headquartered in Amsterdam, Noord-Holland and currently employs 538 full-time employees. The company went IPO on 2008-04-03. The firm is engaged in the production, development and exploration of oil and gas in the pre-Caspian Basin. The firm's range of products includes crude oil, stabilized liquid condensate, liquefied petroleum gas (LPG) and dry gas. The company has invested in developing its own infrastructure to control the transportation of its products to serves a network of destinations and off-takers. The operational facilities of Nostrum Oil & Gas are located in Chinarevskoye field. The firm has three fields in north-western Kazakhstan that offers direct operational synergies, such as the Rostoshinskoye field, the Darzhinskoye field, and the Yuzhno-Gremyachenskoye field. Nostrum indirectly holds a 100% interest in Zhaikmunai LLP, which is engaged in the exploration, production and sale of hydrocarbons from the Chinarevskoye field in north-west Kazakhstan.
Nostrum Oil & Gas Plc operates as a holding company which engages in the production, development, and exploration of oil and gas in the pre-Caspian Basin. The company is headquartered in Amsterdam, Noord-Holland and currently employs 538 full-time employees. The company went IPO on 2008-04-03. The firm is engaged in the production, development and exploration of oil and gas in the pre-Caspian Basin. The firm's range of products includes crude oil, stabilized liquid condensate, liquefied petroleum gas (LPG) and dry gas. The company has invested in developing its own infrastructure to control the transportation of its products to serves a network of destinations and off-takers. The operational facilities of Nostrum Oil & Gas are located in Chinarevskoye field. The firm has three fields in north-western Kazakhstan that offers direct operational synergies, such as the Rostoshinskoye field, the Darzhinskoye field, and the Yuzhno-Gremyachenskoye field. Nostrum indirectly holds a 100% interest in Zhaikmunai LLP, which is engaged in the exploration, production and sale of hydrocarbons from the Chinarevskoye field in north-west Kazakhstan.
Production Decline: Production volumes continued to decline due to natural depletion at the Chinarevskoye field, partially offset by incremental volumes from new operational initiatives.
Revenue & EBITDA Drop: Q3 revenue was $36 million and Q3 EBITDA was $17 million, both down year-on-year as a result of lower production and commodity prices.
Cash Position: The company maintains a strong liquidity buffer with $172 million in unrestricted cash at quarter end, despite significant one-off cash outflows for tax and M&A.
GTU3 Gas Plant Restart: The GTU3 gas plant, with 2.5 bcm per annum capacity, was successfully restarted and is operating as designed, improving efficiency and product extraction.
Stepnoy Leopard & Drilling: Appraisal campaigns and a limited drilling program were launched to explore new production opportunities and fulfill license obligations, though these are not expected to reverse production declines.
Ural Oil & Gas Tieback: The tieback project is progressing on schedule with production startup still expected in Q4 2023.
EBITDA Margin: EBITDA margin fell to 37% due to lower revenues and a largely fixed cost base.
