27th May 2015 07:13
LONDON (Alliance News) - Trinity Exploration and Production PLC Wednesday said it swung to a substantial pretax loss in 2014 after making significant impairments against its assets due to the fall in oil prices as it continues its strategic review which may lead to the sale of the company.
The oil and gas company operating in Trinidad and Tobago and South Africa reported a USD128.8 million pretax loss in 2014, swinging from a pretax profit of USD48.0 million a year earlier as revenue dipped to USD113.5 million from USD123.8 million.
The loss was caused by impairments totalling USD96.2 million related to its oil and gas assets, a USD22.6 million impairment of the EG-8 exploration well, an exploration write off of the El Dorado 1 well of USD14.9 million and some smaller exceptional items. In total, exceptional items amounted to USD135.9 million for the year.
Earnings before interest, tax, depreciation and amortisation also fell to USD28.5 million from USD34.8 million in 2013.
Average production fell to 3,603 barrels of oil equivalent per day from 3,798 barrels per day. Trinity said since the start of 2015, it has now reduced its operating expenses to USD21.4 per barrel of oil from USD25.1 per barrel in December 2014, leading to "operating break even across all fields", it said.
In 2014 the company achieved an average oil price of USD85.8 per barrel compared to USD91.6 per barrel in 2013.
In April, the company launched a strategic review which could lead to the potential sale of the company, a merger or the sale of the company's existing assets. The company is focusing on reducing costs in the meanwhile, and on Wednesday said Bruce Dingwall has become non-executive chairman from executive chairman and has elected to "suspend all fees" related to non-executive roles, and said administrative costs had fallen 19% year on year in 2014.
Trinity shares were down 11% to 13.75 pence in early trade, one of the worst performers in the AIM All-Share.
By Joshua Warner; [email protected]; @JoshAlliance
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