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Chilean national oil company Enap grew its H1 net profit 124% to a 15-year high of US$132mn mainly on the improved performance of its refining division.
Enap operates in three business areas – refining and commercialization (R&C), exploration and production (E&P), and gas and energy (G&E). The latter unit encompasses LNG sales from the Quintero regasification terminal, in which Enap holds a 20% ownership stake, and power generation.
In a statement, CEO Marcelo Tokman attributed the positive results to improved management and efficiency within the refining division, namely with regard to crude oil purchases and energy consumption.
Sales of refined petroleum products accounted for 84% of total revenues, which fell 40% to US$2.38bn on the sharp year-on-year drop in global crude oil prices. The majority of Enap's crude oil comes from South America and Africa, with principal suppliers comprising Brazil, Ecuador and Angola, the firm said in its MD&A.
The Brent crude benchmark averaged US$59.40/b during the period, down from US$108.80/b. Enap's share of the refined products market in Chile has historically fluctuated between 60-80%, Enap said.
E&P sales fell to US$302mn from US$357mn, accounting for 8.9% of total revenue. Sales of imported natural gas contributed 4.9%. Profits for Enap's non-Chile E&P subsidiary Enap Sipetrol fell to US$23mn from US$56mn, attributed to the drop in crude oil prices. Enap Sipetrol holds E&P licenses in Argentina, Ecuador and Egypt.
Domestically, Enap produces hydrocarbons - mainly unconventional natural gas – in Chile's southernmost Magallanes region (XII). As part of its 2014-25 strategic plan, Enap plans to double oil and gas production to 32,000boe/d.
The first half also included the launch of construction on the 48MW Cerro Pabellón geothermal power plant, a JV with Italian renewable energy firm Enel Green Power (51%), in which Enap holds the remaining 49%.
Arenal output reaches 1Mm3/d
Enap also announced that natural gas production has reached 1Mm3/d at the Arenal block in Chile's southernmost Magallanes region (XII).
Enap has drilled 41 of the 52 wells scheduled for 2015 in Magallanes, where Tokman and Chilean President Michele Bachelet on Friday signed a social dialogue agreement with the company's two unions, Fenatrapech and Fesenap.
The agreement assures the parties' commitment maintain channels of dialogue so that Enap can fulfill its 2014-25 strategic plan, a company statement said.
Gas output from Arenal is used to meet the needs of the region's residential consumers, and as feedstock for a nearby petrochemicals plant owned by Canadian firm Methanex.
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