Enwell Energy plc, an oil and gas exploration and production group, has announced its unaudited results for the six-month period ending June 30, 2023. The company reported an aggregate average daily production of 2,730 barrels of oil equivalent per day (boepd), down from 3,026 boepd in the same period last year. The decrease in production was primarily due to significantly lower gas prices. The GOL-107 development well was successfully completed in Q4 2023 and is currently undergoing long-term test production.
In terms of financials, Enwell Energy reported revenue of $33.1 million, down from $77.2 million in the first half of 2022. Gross profit was $19.6 million, compared to $51.5 million in the same period last year. Operating profit was $17.2 million, down from $48.9 million in 1H 2022. Net profit for the period was $12.5 million, compared to $32.4 million in the previous year. The decrease in revenue and profit was primarily due to significantly lower gas prices.
Enwell Energy had cash and cash equivalents of $33.8 million as of June 30, 2023, down from $77.4 million in the first half of 2022. This decrease was mainly due to the payment of a £48.1 million interim dividend in June 2023. The company also had $79.1 million in cash as of December 14, 2023. The average realized gas, condensate, and LPG prices in Ukraine were significantly lower compared to the previous year.
Looking ahead, Enwell Energy highlighted the significant impact of the Russian invasion of Ukraine on its business and operations. The company stated that the scale and duration of future disruption to its business is currently unknown, and there remains significant uncertainty about the outcome of the war in Ukraine. The Ukrainian authorities have taken regulatory actions against the company, including the suspension of production and exploration licenses. The company's development work planned for 2024 is subject to the resolution of these regulatory issues and the ability to operate safely.
Enwell Energy also mentioned that work on the VAS field and SC license area will remain suspended until there is a resolution of the regulatory issues. The company retains approximately a quarter of its cash outside Ukraine, which provides a material buffer to any further disruptions to its operations. The development program for the remainder of 2023 and 2024 is expected to be funded from existing cash resources and operational cash flow.