Karoon Energy leads ASX 200 gains as rising oil prices drive Q3 revenue lift
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The news: Oil and gas explorer Karoon Energy was the top performer on the ASX 200 in early trade after reporting a lift in quarterly revenue despite seeing lower production during the period.
The numbers: Karoon shares were up 7% to $1.55 at 10:50am AEDT. The stock is up 10.4% over the last 12 months.
The group reported third-quarter production of 2.59 million barrels of oil equivalent (MMboe) on a net revenue interest basis, 12% lower compared to the previous quarter.
The group narrowed its calendar year production guidance from 9.8-10.5 MMboe to 9.8-10.4 MMboe.
Sales volumes fell 3% to 2.52 MMboe, primarily due to the timing of shipments, but revenue climbed 3% to USD164.1 million ($252.9 million), reflecting higher realised oil prices.
The context: Karoon said production was impacted by issues with two wells at its Baúna project in Brazil, and a scheduled shutdown of its Who Dat facility in the Gulf of Mexico.
The company said its fourth-quarter production relies on "several variables", including Baúna uptime and potential weather impacts from the last month of the hurricane season in the US.
The source: ASX
