28th Jun 2022 17:58
(Alliance News) - President Energy PLC performed well in a "tricky" year, said broker finnCap following the oil & gas company's results.
Shares in President Energy ended up 0.7% at 1.51 pence in London on Tuesday, and the stock has fallen 7.9% over the past 12 months.
President Energy swung to a pretax profit of USD5.7 million in 2021, from a loss of GBP10.3 million the previous year. The company's adjusted earnings before interest, tax, depreciation and amortisation of USD7.5 million was up sharply on USD2.1 million the year before.
Revenue rose 23% to USD34.1 million from USD27.8 million as a result of a recovery in commodity prices in Argentina and the US, the company explained.
Net production averaged 2,473 barrels of oil equivalent per day in the year, down from 2,714 barrels a year prior. However, the average product price rose to USD40.7 per barrel of oil equivalent from USD30.0 per barrel the previous year.
finnCap noted it was a "challenging" year operationally, with production hit by well shut-ins in Louisiana and Rio Negro drilling issues.
However, President Energy delivered a strong earnings rise and has put in place a platform for future growth.
The broker added: "Flush production from new oil wells in Salta province alongside the restoration of Louisiana volumes and higher oil prices are set to drive further strong Ebitda growth in 2022, plus the successful farm-out in Paraguay means a return to high impact exploration in H2."
By Lucy Heming; [email protected]
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