10th Sep 2020 10:15
(Alliance News) - Energean PLC on Thursday said its earnings reduced in the first half, driven almost entirely by the Prinos area assets, investment in which has been significantly reduced as a result of the ongoing strategic review.
The oil and gas producer reported production for the first half of 2020 of 2,100 barrels of oil equivalent per day, down from 3,900 barrels reported for the year prior.
Energean said it generated revenue of USD2.1 million for the six months to the end of June, down sharply from USD40.0 million reported a year earlier. Pretax loss widened significantly to USD99.1 million from USD3.1 million year-on-year.
The company booked an impairment of property, plant and equipment of USD63.0 million versus no such cost reported a year ago. Other expenses also rose, to USD15.8 million from USD3.5 million.
"Despite some Covid-19-related disruptions, in the year-to-date we have made solid progress on our flagship gas project in Israel, which is scheduled to deliver first gas in the second half of 2021," highlighted Chief Executive Mathios Rigas.
"In the second half of the year, we look forward to completing our acquisition of Edison E&P, which, alongside the Karish project, will further secure our long-term, resilient cash flow profile and option-rich portfolio. Following completion of the deal, around 70% of our future production will be sold under long-term gas sales agreements that will largely insulate us against oil price volatility," added Rigas.
Energean shares were trading 0.5% higher in London on Thursday at 552.70 pence each.
By Evelina Grecenko; [email protected]
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