Xcite Energy Limited Reports £2.7m Loss For Third Quarter

Xcite Energy (LSE: XEL) published its results for the three- and nine-month periods ending 30 September this morning, in which it reported a £2.7m loss for the three month period to the end of September, owing to unrealised foreign exchange losses caused by a strengthening US dollar.

The share price of the North Sea-focussed heavy oil appraisal & development company is currently up 1.1%  in trading so far today.

The company highlighted various partnerships and collaboration agreements signed during the year-to-date, including:

• a Memorandum of Understanding signed with China Oilfield Services Limited, which sets out the principles for the provision and operation of a new-build, harsh environment, jack-up drilling rig;
• an agreement signed with Statoil and EnQuest to share information to evaluate the potential benefits of a future shared gas import pipeline;
• an agreement signed with Statoil and Shell, which provides for the sharing of information to evaluate potential synergies and collaboration between the Bentley and Bressay fields.

 Xcite also reported that it had raised $140m via the issue of senior secured bonds and new equity share capital, and had repaid $80m of unsecured loan notes.  The company had cash balance of £38.7m, as of the end of  September.

Commenting on the results, CEO Rupert Cole said

“Offshore oil and gas developments are major and complex engineering projects, which require detailed planning and execution for successful delivery.  We believe that our strategy to work with our selected development partners early in the project life, in a collaborative partnership model, with aligned incentives to deliver the project safely, on-time and on-budget, is an innovative and appropriate strategy for addressing the key challenges currently facing our industry.”

“As we look forward to formalising the relationship with our partners over the coming months, we remain committed to delivering value for all stakeholders and firmly believe that this collaborative strategy is the right approach in the current market environment.”

At 45p, Xcite’s share price has slumped by 53% since the start of the year, compared with an 18% decline in the AIM index.  And over the longer term Xcite is only just  beating its index, with a share price gain of 8.5% over the past five years, during with time the AIM 100 has risen 7.25%.