Higher expenses eroded increased revenues to send full-year net profit plunging at US independent Energy XXI.
The US independent is, however, targeting a significant hike in production in the current financial year, while exploration drilling expenses are set to be chopped.
Net profit for the 12 months to the end of June was $59.11 million, well off the $162.08 million taken a year earlier.
This was despite revenues going from $1.21 billion to $1.23 billion as average production grew 4% from 43,100 barrels of oil equivalent per day to 45,000 boepd.
The reason for the profit drop was an increase in costs from $847.04 million to $950.31 million, with depreciation, depletion and amortisation up from $376.22 million to $423.32 million.
General and administrative expenses were also up some $25 million, with derivatives losses up $4 million.
The Houston-based player has set its sights on between 59,000 boepd and 64,000 boepd on average in the current financial year to the end of June – at the midpoint, this would represent a 37% year-on-year increase.
Estimated capital expenditure in the current financial year is between $850 million and $950 million, with exploration drilling expenses to slide from $112 million to $33 million.