15th Apr 2020 17:52
(Alliance News) - Upstream oil & gas company Sterling Energy PLC on Wednesday said loss for 2019 narrowed year-on-year on reduced costs.
The stock closed 6.1% higher at 8.41 pence each on Wednesday in London.
For 2019, the company reported a pretax loss of USD1.6 million, narrowing from USD2.0 million reported for 2018. No revenue was recorded for the period versus USD534,000.
Sterling said that while oil price started strongly at the beginning of the year with Brent reaching USD67 per barrel, at the end of the year, the price dropped to USD60. Acquisition activity was negatively affected as a large portion of available assets were higher-risk exploration prospects with operators reluctant to sell oil production and development opportunities.
The lower pretax loss was attributed to a reduction in administrative expenses by 15% to USD2.6 million from USD3.0 million. The company added that its financial obligations for 2020 are minimal and are fully funded.
Looking ahead, Sterling said it expects the decline in oil price arising from the Covid-19 outbreak - which has weakened highly leveraged oil companies - to allow it to benefit by partnering with such companies as well as present new opportunities to acquire assets at "advantageous terms"
At the end of 2019, the company had cash and cash equivalents of USD44.9 million
By Ife Taiwo; [email protected]
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