13th May 2020 14:21
(Alliance News) - Trinity Exploration & Production PLC on Wednesday posted a sharply widened annual loss resulting from a much higher impairment of property, plant and equipment.
The Trinidad & Tobago-focused exploration and production company reported a USD12.1 million pretax loss for 2019, far wider than 2018's USD4.1 million loss.
This was due to exceptional items - resulting from an impairment of property, plant and equipment - which amounted to USD15.2 million in 2019 versus only USD2.3 million the prior year.
Trinity's annual revenue rose 2.1% to USD63.9 million from USD62.6 million on higher crude oil sales.
Chair Bruce Dingwall said: "2019 was a significant year for Trinity as we adopted new operating practices, along with new technologies and techniques, with a view to better securing, and then growing, our base production levels. The aim is to protect against the downside, whilst yielding better and more repeatable returns on investment in the future. We made substantive progress in 2019 towards our goal of becoming a more technologically driven operator in our effort to drive optimum financial and environmental performance, and these efforts will stand the company in good stead when we look forward to 2021 and beyond".
He added: "Clearly the market has suffered due to the impact of the Covid-19 pandemic and the OPEC+ standoff, which together precipitated a significant decline in oil prices. Whilst the market backdrop is not as we would like, the strength of our operations and our balance sheet ensure that we remain well placed despite the challenging environment. We continue to prudently manage our operations, remain highly resilient to low oil prices and confident we can ride out the storm and be open to capture the opportunities that will inevitably exist for the more robust and low cost operators".
Trinity said that while production volumes for the rest of 2020 are dependent on oil prices as well as market conditions supporting the resumption of new drill activity, it still forecasts an increase in net average production to between 3,100 and 3,300 barrels of oil equivalent per day from 3,007 barrels in 2019 and 2,821 barrels in 2018.
Shares in Trinity were up 2.1% at 6.17 pence in London on Wednesday afternoon.
By Anna Farley; [email protected]
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