28th May 2020 14:07
(Alliance News) - Jadestone Energy Inc on Thursday reported year-on-year growth in first-quarter profit and said that it has not experienced any disruptions to its offshore operations due to the Covid-19 pandemic, but precautionary measures remain in place.
The Asia Pacific focused oil & gas producer recorded pretax profit of USD13.1 million for the three months to March 31, up 23% from USD10.7 million a year ago. Net profit in the fourth quarter of 2019 totalled USD27.1 million.
Revenue for the quarter totalled USD74.2 million, down 19% from USD91.2 million in the final quarter of 2019 but up 32% from USD56.4 million in first quarter of 2019. The drop in first-quarter revenue compared with the previous quarter was attributed to a combination of slightly lower lifting volumes and realised prices.
Jadestone generated positive adjusted earnings before interest, tax, depreciation, amortisation and exploration costs of USS30.9 million in the quarter, compared to USD59.9 million in the previous quarter and USD23.1 million in the year ago quarter.
The variance to the fourth quarter of 2019 was attributed to lower liftings and higher production costs, partially offset by increased hedging income.
During the first-quarter, the company recorded USD8.2 million in hedging income classified as profit. This compared with hedging income of USD3.5 million in the fourth quarter of 2019 and USD5.8 million in first-quarter of 2019.
First-quarter production averaged 11,665 barrels per day, 21% lower than the previous quarter and 11% lower than the year ago quarter.
Jadestone Energy expects to produce 12,000 to 14,000 barrels per day for 2020. It has reduced its planned 2020 spending guidance by 80% to between USD30 million and USD35 million, by delaying the Nam Du and U Minh gas field developments, offshore Vietnam, and deferring the Australia infill drilling campaign into 2021.
The company re-affirmed its intention to declare a maiden dividend payment later in 2020, with a targeted range of USD7.5 million to USD12.5 million.
Shares in Jadestone Energy were up 8.4% at 55.80 pence each in London on Thursday afternoon.
By Tapan Panchal; [email protected]
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