Nostrum Oil and Gas has seen a $58million increase in its income over the last nine months despite a dip in oil prices.
The independent oil and gas company has seen an average daily production of 45,204 boepd (barrels of oil equivalent per day), which was above the estimated average of 45,000 boepd.
Revenue for 2014 is expected to be in excess of $620million.
Earlier this year, Nostrum announced a pre-tax profits rise of 9.6% on 2013’s results to $312.7million.
Kai-Uwe Kessel, chief executive officer of Nostrum Oil and Gas, said: “I am very pleased with the strong performance of the Company during the third quarter.
“While we have seen a significant decline in the oil price, which has naturally impacted revenue, our low cost base has allowed us to maintain healthy margins at current oil price levels.
“During the period, we have increased our cash position by approximately US$58m despite a declining oil price, demonstrating that the company remains highly cash generative.
“Our hedging strategy against oil price fluctuations will ensure we remain fully funded for the construction of the GTU3 over the next 24 months and this project remains on track to achieve a doubling of production to 100,000 boepd by the end of 2016.”
Nostrum announced at the beginning of the year that it had entered into a contract with KazStroyService, a $1.5billion revenue engineering, procurement and construction company also based in Kazakhstan.
The contract includes the construction of a third unit of the group’s gas treatment facility for a consideration of $150million, which is in line with Nostrum’s GTU3 project.
The GTU3 project, which remains on time and on budget at less than $500million, will double the firm’s production by 2016.
