12th Jun 2020 11:12
(Alliance News) - Echo Energy PLC on Friday posted a widened annual loss as cost of sales exceeded revenue, with no revenue and no cost of sales the year prior.
Shares in Echo Energy dropped 6.7% to 0.84 pence in London in morning trading.
The Latin American focused upstream oil and gas company reported a pretax loss of USD10.0 million for 2019, widened from a USD9.7 million loss the year before.
Revenue for 2019 totalled USD2.6 million, including USD1.4 million of oil sales and USD1.2 million of gas sales, while no revenue was recorded for the year before. However, cost of sales totalled USD3.1 million, versus nothing in 2018, meaning a gross loss of USD541,473.
On top of this, financial expense rose 38% to USD5.5 million from USD4.0 million.
In response to the Covid-19 pandemic and OPEC+ price war, which hurt oil and gas prices, Echo has renegotiated its debt, shrunk its general and administrative expenses, and reduced capital expenditure.
Chief Executive Martin Hull said: "Although 2020 has brought with it some very serious global challenges, the work Echo accomplished in 2019, and the team that we have in place, means we are well positioned to meet these challenges and maximise the value creation potential from our existing portfolio and look to positively move forward with further future value creation opportunities."
By Anna Farley; [email protected]
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