23rd Apr 2020 11:45
(Alliance News) - Gulf Keystone Petroleum Ltd on Thursday revealed an earnings fall in 2019 and added that it is in the process of cutting a portion of its staff due to the Covid-19 health crisis.
Revenue in 2019 fell by 17% to USD206.7 million from USD250.6 million with pretax profit down by 46% to USD43.3 million from USD79.7 million.
Gulf Keystone operates the Shaikan oil project in the Kurdistan region of Iraq.
Chief Executive Jon Ferrier said: "2019 saw a step change in activity at Shaikan; we delivered production and controlled expenditures in line with guidance, returned just under USD100 million to our shareholders, and maintained a strong balance sheet with cash of USD164 million at April 22, 2020."
In January, Gulf Keystone said 2019 average gross production was 32,883 barrels of oil per day, meeting expectations.
Ferrier added: "The current oil price and macro-economic uncertainty continues to have profound, far-reaching effects. We have taken concrete steps to protect value and assure the viability and financial strength of our business, both for today and the longer-term."
The company has suspended all guidance for 2020; it expected average production of between 43,000 barrels and 48,000 barrels per day. By the third-quarter, it hoped output will reach 55,000 barrels a day.
Gulf Keystone added: "The company is actively focused on maintaining a robust financial position and is targeting a major reduction of costs across the business, while maintaining a strong focus on safety and long-term asset reliability. These actions are being taken in response to the current oil price environment and in anticipation of a protracted recovery."
Capital expenditure is expected to be roughly 50% lower in 2020, and the company is in the process of reducing about 60% of its expatriate workforce.
Shares in the company were 11% higher at 80.20 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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