11th Jun 2020 11:14
(Alliance News) - Reabold Resources PLC on Thursday reported a widened loss in 2019 amid increased expenses.
The AIM-listed oil & gas project investing company said its pretax loss widened in 2019 to GBP4.2 million from GBP2.0 million a year earlier, despite revenue growing to GBP1.5 million from GBP194,000 in 2018.
Reabold explained that the share of losses of associates multiplied in 2019 to GBP3.0 million from GBP165,000 year-on-year, while administrative expenses increased to GBP1.4 million from GBP939,000.
Reabold aims to create value from each project by investing in undervalued, lower-risk, near-term upstream oil & gas projects. This has been achieved through investments across the company's portfolio of assets in the UK, US and Romania, it said.
Reabold said it has a fully funded, high-impact work programme planned for the remainder of 2020.
The impact of Covid-19 on the oil & gas industry is "undeniably dramatic", the company noted. However, Reabold said the entire basis of its model is to invest in undervalued assets that would be able to deliver profitably under any reasonable oil & gas price assumption, are at the lower end of the industry cost curve, and will be competitive against other sources of hydrocarbons.
"We are highly encouraged by the success we have had so far in the implementation of our strategy to invest in low-risk, high impact, upstream oil and gas projects," said Co-Chief Executives Stephen Williams and Sachin Oza.
"The board is confident that its shareholders can look forward to an exciting 2020 and beyond," added Oza.
Reabold Resources shares were trading 1.1% lower on Thursday in London at 0.66 pence each.
By Evelina Grecenko; [email protected]
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