North Sea explorer Faroe Petroleum reversed 2012’s losses with a £14million profit last year.
The Aberdeen-based firm, with interests across the Atlantic margin, saw exploration write-offs fall by 78% to £15.4million for the year, with profits of £14.1million compared with a £5.2million loss in 2012.
But earnings fell almost £16million for the year as production shutdowns at the Njord and Hyme North Sea fields reduced output.
Production dropped from 6,900 barrels a day in 2012 to 6,059 barrels in 2013, with Faroe reiterating its production guidance of 4,000 to 6,000 barrels of oil equivalent per day.
Chief executive Graham Stewart said: “The unscheduled production interruption on Njord and the Hyme satellite since July 2013 affected production levels in the year and we look forward to their return to production this summer.”
Work is under way on three appraisal and exploration wells for the company’s assets in Norway, with tests on the recently discovered Pil find now under way.
The company said it expected to spend around £110million before tax on exploration and appraisal for the year, with several more wells planned for the second half of 2014.
It noted that, of the £110million it planned to spend, it would only actually shell out £35million because of Norway’s generous tax- rebate system.
In December 2013 the company received a tax rebate for 2012 of £44.2million, most of which was used to repay the 2012 use of its exploration financing facility.
Norway-focused Faroe fell just one place in a league table of independent oil and gas firms compiled by Deloitte – from 13th to 14th.
The annual compilation of listed UK explorers featured Tullow Oil in top spot again, although a 15% drop in the list’s collective market capitalisation last year was due to mainly to a collapse in the Africa- focused explorer’s own share price.
Other North Sea firms on the list included Catcher field operator Premier Oil, holding steady at number four; Cairn Energy which fell one place to sixth, and UK shale explorer Igas Energy at 16th place.
The Parkmead Group, led by Tom Cross, raced up the 25-strong table from 24th to 19th place.
Bruce Dingwall’s Caribbean-focused Trinity Exploration joined the list in 18th place.