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(Alliance News) - Nostrum Oil & Gas PLC on Monday posted a significant drop in its earnings for the first nine months of 2020 due to a challenging environment expected to continue into 2021.
The exploration & production company said revenue for the nine months ended September 30 was USD135.8 million, down 46% from USD250.3 million recorded the year prior. Earnings before interest, taxes, depreciation, and amortization was USD60.3 million, a sharp year-on-year dive from USD160.2 million.
"The operating environment remains challenging. Low prices for our products, especially gas, are likely to continue into 2021 and, whilst we have not to date lost any production due to the pandemic, the threats posed by Covid-19 both to the health and safety of our people and contractors, and to our operations, are of utmost concern," said Chief Executive Atul Gupta.
Average production for the nine months to September-end was 23,129 barrels of oil equivalent per day. Average output was 28,589 barrels per day in 2019, so the current pace is down 19%.
Average sales volumes for the recent nine-month period was 22,269 barrels of oil per day. Nostrum Oil & Gas recently increased its guidance for average daily sales volumes for 2020 to 20,000 barrels from 19,000 barrels.
Shares in Nostrum were trading 3.6% higher at 9.56 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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