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(Alliance News) - Europa Oil & Gas Holdings PLC on Wednesday said it has decided to cut pay of senior managers to save cash amid the Covid-19 pandemic, after posting a sharply widened first half loss.
The oil & gas explorer has decided to temporarily cut 20% pay of its executive team, directors and consultant and has paused the search for a permanent chief executive officer. It also said the virus is having no impact on operations at its three production sites.
For the six months to January 31, Europa recorded a pretax loss of GBP3.5 million versus a GBP437,000 loss in the year ago period, mainly due to write-offs taken following relinquishment of Irish licences. Write-off charges totalled GBP3.0 million versus a write back gain of GBP270,000 a year ago.
First half revenue fell year-on-year to GBP778,000 from GBP859,000.
First half production from the company's three UK licences amounted to 90 barrels of oil per day in the interim period, in line the year ago period and financial 2019 performance.
The company expects net production to more than double to over 200 barrels of oil per day when the Wressle field in north Lincolnshire comes on stream later later in 2020 at an expected initial rate of 500 barrels of oil per day.
Shares in the company closed at 8.3% higher at 1.11 pence each in London on Wednesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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