23rd Mar 2023 14:31
(Correcting income statement figures)
(Alliance News) - Diversified Energy Co PLC on Tuesday said annual loss widened despite revenue significantly improving, as loss on derivative financial instruments eroded the benefit of increased revenue, alongside climbing costs.
The Alabama, US-based gas and oil production company said 2022 pretax loss widened to USD799.5 million from USD550.9 million in 2021, despite revenue almost doubling to USD1.92 billion from USD1.01 billion.
This was because it saw loss on derivative financial instruments widen to USD1.76 billion from USD974.9 million, while operating expenses increased 53% to USD445.9 million from USD291 and depreciation, depletion and amortisation rose 33% to USD222.3 million from USD167.6 million.
Finance costs also doubled to USD100.8 million from USD50.6 million.
Diversified still ticked up its total dividend payment with an average quarterly dividend payment per share of USD0.043, up from USD0.041 in 2021, taking the total 2022 dividend to USD0.17 per share, up 5% from 2021.
"This year is one marked by turning the challenge of volatility into opportunities," said Chief Executive Officer Rusty Hutson.
"Natural gas pricing recovered from multi-year lows amidst an ever changing macroeconomic and geopolitical backdrop. Diversified once again exhibited remarkable stability and consistency while growing its production base by around 14%."
Looking ahead, Diversified Energy said it is well-positioned for 2023 and beyond.
"The invasion of Ukraine by Russia placed severe pressure on global climate change aspirations and caused many countries to revisit their near-term energy transition plans in the face of an imminent energy insecurity risk," Diversified Energy said in its market review statement.
"With a continued focus on innovation and clean energy from producers, we believe natural gas will continue to gain support in the geopolitical community and will play a significant role in accomplishing the world's net zero ambitions. US shale natural gas and liquefied natural gas have tremendous potential as a global energy solution given their abundance of supply and low cost structure. They just need to be unleashed to the world demand markets."
Shares in Diversified Energy were down 0.2% to 94.70 pence each in London on Thursday afternoon.
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