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(Alliance News) -Â Borders & Southern Petroleum PLC on Wednesday reported a narrowed full-year loss, though cautioned it may need to raise additional capital in the coming year.
The company's pretax loss for 2020 was USD1.0 million, slimming from USD1.4 million in 2019. This reflected a fall in administrative expenses.
"The company has always maintained strong financial control and a low overhead. However, further cost savings have been made during the past year, including a reduction in salaries by 50%," the Falkland Islands-focused oil & gas exploration firm said.
The year-end cash balance was USD2.2 million, down from USD3.7 million a year prior.
Borders & Southern said: "With a decreasing cash balance, and in the event that market conditions prevent us from sourcing partner funding, it may be necessary to raise additional capital in the coming year."
The outlook for the industry remains challenging, though there are signs of optimism, with Brent oil prices rising in the first quarter of 2021.
"Whilst this has not yet impacted company expenditure patterns, if the trend were to continue, and energy demand accelerates as the world comes out of the Covid pandemic crisis, there will be a need to bring additional resources into production. Borders & Southern aim to be part of that production increase," the firm said.
Shares in company were down 7.8% at 1.25 pence in London on Wednesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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