26th Jun 2023 13:53
(Alliance News) - Zephyr Energy PLC on Monday said it significantly increased its production investments throughout last year, reported substantial revenue and profit growth, and said that it will focus on developing its flagship project in the near future.
Zephyr Energy is a London-based oil & gas exploration and development company focused on the Rocky Mountains in the US.
Zephyr said its pretax profit for 2022 was USD21.2 million, up from USD848,000 in 2021. Revenue multiplied to USD41.1 million from USD6.0 million. In 2022 the company also made gains of USD1.8 million on derivative contracts.
Total investment in property, plants and equipment increased to USD51.8 million from USD11.2 million, which Zephyr Energy said reflected acquisitions of non-operated assets in its Williston Basin project in North Dakota, as well as decommissioned obligations and recurring capital expenditure.
Investment in exploration and evaluation assets, meanwhile, increased to USD38.0 million from USD22.8 million.
At December 31 the company had USD9.0 million cash, up from USD1.8 million at the same time one year prior.
Zephyr Energy did not declare a dividend for 2022, unchanged from the year before.
This year, Zephyr Energy is prioritising the Paradox project in Utah, which it intends to move into full commercial production. The group will also aim to grow its non-operated asset portfolio.
"Zephyr continues to be well positioned as a profitable, cash generating exploration and production group and our balanced portfolio of operated and non-operated assets is expected to continue to yield strong results for Zephyr. Cash flows generated from our non-operated portfolio will continue to be primarily used for the ongoing development of our flagship Paradox project," said Non-Executive Chair Rick Grant.
"Looking ahead, with a diverse portfolio of cash-flowing assets, potential for substantial future organic growth, a solid financial footing and a talented and dedicated team of employees, we continue to be extremely optimistic about Zephyr's future."
Shares in Zephyr Energy were down 4.1% at 3.74 pence in London on Monday afternoon.
By Emma Curzon, Alliance News reporter
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