Kistos PLC (AIM:KIST) reported a massive jump in revenue and underlying earnings for the first half of the year as the Netherland-based producer increased output and benefited from high gas prices.
Revenue jumped 745% to €285.10mln and adjusted EBITDA increased 768% to €260.98mln.
Sales from its offshore and onshore production sites were boosed by a 299% increase in the average realised gas price to €82.65 MWh, compared to €20.71 MWh in the first half of 2021.
The company said net daily production from the Q10-A gas field averaged 6.1 kboe/d, a 5% increase over the first half of 2021.
As a result of the acquisition of the GLA assets, daily production has more than doubled to 12.4 kboe/d on a pro forma basis, the company added.
The North Sea investment firm said GLA development and exploration programmes will begin imminently using the investment allowance provided by the UK Energy Profits Levy.
The company anticipates Glendronach to be sanctioned by this year end, and production to begin end-2024.
"Our strong cash generation for the first half of the year has been driven both by operational excellence across our assets in the Netherlands, and the high demand for natural gas across Europe," said Andrew Austin, executive chair, in a statement.
"With the recent addition of our interest in the GLA assets in the UK North Sea, our forecasted daily production rates are set to more than double."
Following weeks of wrangling, Kistos last month abandoned its pursuit of Serica Energy after its merger proposal was rejected.
"Our recent proposed combination with Serica Energy was a clear demonstration of our ambition, and while this proposal did not progress, our appetite for mergers and acquisition remains core to Kistos' ethos of delivering material value for our stakeholders," added Austin.
The company reported successful drilling and workover activities between July 2021 and February 2022 at a cost per MWh of €2.28 or €5.56 on a pro forma basis.
Shares of the company were trading 0.29% higher at 526.50p in early trades.