Petroceltic cuts full-year forecast on lower output

Monday 09 September 2013 11.02
Egypt accounts for nearly 60% of Petroceltic's revenue
Egypt accounts for nearly 60% of Petroceltic's revenue

Petroceltic International has cut its production forecast for the full year due to lower-than-anticipated output in Egypt.

The oil and gas company, which focuses on the Middle East and North Africa region, the Mediterranean basin and the Black Sea region, said it expected production to be 24,500-25,500 barrels of oil per day in the year ending 31 December.

The company said in January that it expected 2013 production to be between 25,000 boepd and 27,000 boepd.

"Although there has been no consistent or on-going disruption to the business, a number of separate factors caused Egyptian production to be slightly below anticipated levels in the first half," the company said in a statement today.

The company's pretax loss widened to $5.29 million in the six months ending 30 June, from $3.2 million a year earlier.

Revenue rose to $104 million from $291,000 a year earlier.

Petroceltic bought Melrose Resources last year for £165 million to gain access to producing assets in Egypt and Bulgaria and strengthen its operations in North Africa and the Black Sea region.

Egypt, which is enduring the worst internal strife in its modern history since the army overthrew President Mohamed Mursi in early July, accounted for nearly 60% of Petroceltic's revenue.