25th Jun 2020 12:59
(Alliance News) - San Leon Energy PLC on Thursday posted a widened loss for 2019 but expressed confidence in its outlook as it highlighted its strong financial position.
Shares in the Nigeria-focused oil & gas exploration company were trading 0.9% higher at 22.30 pence each on Thursday afternoon in London, but 20% lower than at the start of the year.
For 2019, San Leon posted a pretax loss of USD52.7 million, widened significantly from USD2.0 million reported for 2018. This was despite revenue rising 26% to USD266,000 from USD198,000.
The loss was attributed to a non-cash impairment to non-core asset such as its interest in the Barryroe oil field project in Ireland.
During the year, gross production at OML 18 was around 39,000 barrels of oil per day. Oil sales averaged 29,000 barrels of oil per day - down from 30,000 barrels the year prior - after pipeline downtime and pipeline losses which were 24% and 22% respectively.
Looking ahead, the company said that while oil prices have been hurt amid a decline in demand caused by Covid-19 as well as quota disagreements within OPEC regarding how to deal with that reduction in demand, its "robust" financial position will allow it to capitalise on any opportunities which may arise.
"San Leon is in a strong position, currently sitting with USD36.5 million in cash on our balance sheet. OML 18 remains a world class asset and the activities being undertaken by our partners are expected to significantly reduce downtime and losses going forward, benefiting our initial indirect interest of 11% in OML 18," said Chief Executive Oisin Fanning.
By Ife Taiwo; [email protected].
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