Orca Energy Group revenue up 37% in Q3

The increases were mainly the result of increased sales to customers in the electricity sector, according to an interim statement released this week.

Gas deliveries increased by 43% for the third quarter of 2022 and by 45% for the nine months ended September 30, 2022 compared to the same periods of the previous year.

The increase in gross sales volume is mainly due to increased gas deliveries to power customers due to increased deliveries to the Tanzanian Petroleum Development Corporation (“TPDC”) and the Tanzanian Electric Supply Company Limited (“TANESCO”). .

Average gross gas sales volumes are expected to be at the upper end of the Company’s current guidance for 2022 of 80-86 MMcfd.

Net income attributable to shareholders increased 50% for the third quarter of 2022 and 71% for the nine months ended September 30, 2022 compared to the same periods of the previous year, mainly due to the increase in revenues.

According to the report, net cash flow from operating activities increased 61% for the third quarter of 2022 and 142% for the nine months ended September 30, 2022 compared to the same periods a year earlier.

This is mainly explained by the increase in income and non-cash adjustments and by the decrease in volumes of trade and other receivables.

Capital expenditures decreased by 67% for the third quarter of 2022 and increased by 33% for the nine months ended September 30, 2022 compared to the same periods of the previous year.

Capital expenditures in Q1, Q2 and Q3 2022 were primarily related to the completion of the SS-3, SS-4 and SS-10 well workover program, the compression project and the 3D seismic acquisition program.

Jay Lyons, Chief Executive Officer, said: “During the first nine months of 2022, we continued to deliver strong financial and operational performance driven by our ability to deliver record volumes of gas to the Tanzanian market, in part through installation and commissioning. compression at the entrance to the Songas gas plant in March this year and a workover program for three wells.

He said incremental gas sales averaged 83.9MMcfd at the end of the third quarter, up 45% from the same period in 2021 and averaged 92.1MMcfd during the third quarter. quarter, representing new sales records and record production from the Songo Songo field.

He noted that the majority of the increased gas demand growth has occurred in the gas-to-electric sector, which is being driven by increased gas-fired generation capacity and lower generation. of hydroelectricity due to the current drought conditions.

Currently, Songo Songo is producing approximately 135-140 MMcfd of gas (“protected gas” and “supplemental gas”) and is rapidly approaching current design capacity of approximately 150-155 MMcfd following the $75 million investment in compression , well works and integrity management projects over the past two years.

Sallie R. Loera