9th Nov 2015 10:51
LONDON (Alliance News) - Sterling Energy PLC Monday reported a wider loss and a fall in revenue in the third quarter of 2015 following a drop in production and lower oil prices.
The company said its loss after tax in the third quarter of 2015 widened to USD1.6 million from the USD373,000 loss reported a year earlier as revenue plummeted to only USD1.4 million from USD4.2 million.
It also swung to a loss before interest, tax, deprecation, amortisation and exploration expenses of USD2.1 million from the USD1.2 million of earnings reported a year ago.
All of its revenue is derived from the Chinguetti field off the Mauritanian coast, which saw net production in the quarter fall to 303 barrels of oil per day from 463 barrels per day a year earlier. The company said the fall is in line with the expected decline from the field.
The production from that field is stored in a floating production, storage and offloading vessel and in the quarter, one lifting was undertaken totalling 30,789 barrels net to the company compared to one cargo totalling 40,065 barrels a year ago.
On a more positive note, the company remains debt free with a healthy cash balance of USD101.3 million at the end of the quarter, however this is down from the USD107.0 million held at the end of its last financial year.
"Significant effort is being directed towards an active growth mandate, with a clear view to building a diverse exploration portfolio to allow for greater exposure to value accretion triggers in the near to mid-term," said the company.
"The company and group will continue to maintain a disciplined approach to new venture activities, only pursuing and executing those growth options that the company believes to have the best opportunity to ultimately deliver value for shareholders," it added.
Sterling Energy shares were up 1.9% to 14.01 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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