Kistos Holdings PLC shares were still down on Tuesday despite the company reporting a profit of over £254 million in 2022, with significant increases in revenue and production, and appearing eager to reap the benefits of its Mime Petroleum AS acquisition.

Kistos is a London-based low carbon intensity hydrocarbon producer seeking assets ‘with a role to play in the energy transition’.

Despite the positive results, the company’s shares were down 6.6% at 227.00 pence in London on Tuesday.

Kistos said it swung to a pretax profit of £254.1 million in 2022 from a £73.9 million loss the prior year. Its 2021 financial year lasted 14 months due to commencing on October 14, 2020.

Revenue increased substantially over the same period to £411.5 million in 2022 from £89.6 million a year earlier.

Production costs almost quadrupled, to £22.9 million from £6.1 million. Depreciation and amortisation costs soared to £83.2 million from £13.3 million. General and administrative expenses, meanwhile, increased 27% to £9.4 million from £7.4 million.

However, development expenses decreased by 61% to £1.8 million from £4.5 million. Impairments also decreased 63% to £44.5 million from £121.0 million.

Kistos also said its total production rate, including gas, oil and natural gas liquids, was 10,600 barrels of oil equivalent per day, up from just 4,300 barrels the year before. It said this reflected the full-year contribution from its Q10-A offshore Netherlands gas field and just under six months’ production from the offshore UK Greater Laggan Area.

Going forward, Kistos said its acquisition last week of all Mime Petroleum AS shares from Mime Petroleum Sarl would provide a platform for growth on the Norwegian Continental Shelf. It noted this should add 23.6 million barrels of oil equivalent, or 2,000 barrels per day, of production in 2023. The company expects this to increase to over 15,000 barrels per day in 2025 once the offshore support vessel Jotun FPSO is onstream.

‘From a standing start in 2020, we have built an excellent platform, and we will seek to deploy further capital in the right opportunities or make distributions to shareholders,’ commented Executive Chair Andrew Austin.

‘The instability of the fiscal regimes in which we operate has prompted us to review our investment options and, as we have already demonstrated with our entry into Norway, our pipeline of business development opportunities includes assets in jurisdictions other than the UK and the Netherlands in which we can continue to generate substantial returns for investors.’

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