(Alliance News) - Phoenix Global Resources PLC on Friday posted a significantly widened loss for 2019 as it announced plans to cut costs in 2020.
Shares in the Argentina-focused oil & gas firm were trading 15% higher at 10.90 pence each on Friday afternoon in London, but are 46% lower since the start of 2020.
For 2019, Phoenix Global posted a pretax loss of USD134.8 million, more than double from USD61.5 million recorded for 2018. The deterioration was attributed to a fall in revenue and a rise in costs. Revenue was USD129.4 million, falling 27% from USD177.0 million.
The London-based company incurred a USD27.8 million loss on termination of licences and other impairment charges and a USD29.0 million loss of the sale of assets. Administrative expenses were USD27.1 million, rising from USD24.6 million.
In 2019, average daily production in was 9,236 barrels of oil equivalent per day, down from 10,249 boepd in 2018.
Turning to current trading, Phoenix Global said it faces economic uncertainty in Argentina following a change of government in December and as a result of negotiations by the government to restructure the country's debt. It added that the Covid-19 outbreak and the global collapse in demand for oil that caused oil prices to collapse in the first half of 2020, has posed further challenges.
Looking ahead, Non-Executive Chair Michael Rake said: These are truly unprecedented times with disruption on the demand and supply side. The board believes it can leverage this situation and take this opportunity to examine the cost base in detail. Whilst the steps we have agreed to take will be challenging to implement, the board believes this will result in a cost base from which it can leverage the company's interests in its high-quality unconventional oil and gas assets and be in a position to create long-term value for shareholders."
By Ife Taiwo; ifetaiwo@alliancenews.com.
Copyright 2020 Alliance News Limited. All Rights Reserved.