9th Oct 2020 11:37
(Alliance News) - Phoenix Global Resources PLC said Friday its interim pretax loss widened due to revenue more than halving on the shut-in of production and a fall in oil prices.
The oil and gas firm said pretax loss for the six months to the end of June was USD62.1 million, widened from USD43.0 million the year before, as revenue declined by 64% to USD24.9 million from USD68.6 million.
The reduction in revenue was due to a combination of lower realised prices and a substantial drop in oil sales volumes.
The average realised oil sales price during the period fell by 25% to USD39.19 per barrel from USD52.23 the prior year. For gas, average realised sales price declined to USD2.13 per million cubic feet from USD3.45 the year before.
For the period, Phoenix Global's average daily production more than halved to 4,369 barrels of oil equivalent from 9,630 barrels the year before, due to the majority of production was shut-in with effect from April.
Looking ahead, production has now restarted and is expected to continue should demand in Argentina continued to increase, albeit at lower levels before the Covid-19 pandemic.
"Whilst the environment continues to be extremely challenging, the company has taken significant steps to, and continues to, reduce its costs in all areas of the business. The board believes this will put the company in a stronger position to produce oil economically at lower prices with a positive contribution to cash flow and allow it to focus on the continued development of its unconventional assets," Phoenix Global stated.
Shares in Phoenix Global Resources were untraded on Friday, last quoted at 6.50 pence in London.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
PGR.L