30th Sep 2015 14:53
LONDON (Alliance News) - Northcote Energy Ltd on Wednesday said it is "highly confident" many of its projects will start to deliver value in the coming months as it reported a narrowed pretax loss for the first half of 2015.
For the half year to end-June the company reported a pretax loss of USD2.1 million, narrowed from a loss of USD9.8 million a year before, mostly as a result of significant impairment charges in the previous year. It reported a fall in revenue to USD349,000 from USD1.4 million.
It attributed its loss during the half year to lower commodity prices, and said it has been taking steps to address this following the half-year end.
Northcote said it is on course to build an earnings before interest, tax, depreciation and amortisation profitable company in 2016 "irrespective of the oil price environment".
"Successful companies look for and take advantage of opportunities in the face of adversity, and we reacted quickly to position Northcote to thrive in the current oil price environment. As a result of a change in our strategic direction, one which involves adding midstream and downstream activities to our traditional upstream focus, we are now in a fantastic position to take advantage of the enormous opportunities we are seeing across the oil and gas value chain going into 2016 and beyond, and in the process generate significant value for our shareholders regardless of the prevailing oil price," said Managing Director Randall Connally in a statement.
Shares in Northcote were up 0.4% at 0.141 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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