10th Mar 2016 12:27
LONDON (Alliance News) - Bankers Petroleum Ltd Thursday said it made a loss in 2015 after producing less oil and achieving a lower average price, and said production has fallen even lower since the start of this year.
The oil and gas company reported a USD19.7 million pretax loss in 2015, swinging from the USD222.2 million profit in 2014 after revenue sunk to only USD286.6 million from USD583.1 million and funds from operations dropped to USD151.5 million from USD284.3 million.
The fall in oil prices was the primary culprit for the fall, averaging only USD40 a barrel in 2015 compared to USD77 a barrel in 2014, but that was exacerbated by production declining to 19,385 barrels a day from 20,690 barrels a day, with sales falling by a similar amount.
That squeezed its cash margin, making around USD26 profit from a barrel compared to USD47 a barrel the year before.
Production has also declined further since the start of this year, averaging around 17,425 barrels a day.
Bankers tried but failed to offset the steep fall in revenue by lowering its costs, with total expenses in the year amounting to USD285.7 million compared to USD319.0 million a year earlier. The company also lowered its capital expenditure to USD144.0 million, considerably lower than the USD291.0 million spent the year before.
The company has also continued with its hedging programme to try and fend off lower oil prices, and has 4,000 barrels a day hedged at USD57 a barrel, giving its hedges a value of around USD20.0 million.
The results in 2015 could have fared worse, with Bankers' hedging programme producing a USD58.0 million gain in the year.
Moving forward, Bankers said it will need to spend USD24.0 million to maintain the Patos-Marinza oilfield, but said its other expenditure will be based on oil prices throughout the year. The company is considering advancing its oil recovery programme aimed at improving production from existing wells and drilling 16 new wells.
Bankers shares were up 12% to 72.75 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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