(Alliance News) - President Energy PLC on Tuesday reported sliding revenue for the year as significantly lower average commodity prices damaged the firm's top line.
Revenue for 2020 was USD27.8 million, down 32% from USD40.8 million in the pre-pandemic prior year. The decline was blamed on "unprecedented challenges in 2020", including the dramatic drop in the oil price to less than USD20 a barrel.
The Latin America-focused oil and gas firm noted the lower average realised commodity prices within its markets, with a reduction of 40% in Argentina to USD30.0 per barrel of oil equivalent and 34% in the US to USD29.9 per boe. In October, President described the price slump as the "most sudden peacetime fall in living memory".
Shares were 6.6% lower at 1.77 pence in London following the announcement.
President posted a pretax loss of USD10.3 million, narrowed substantially from USD93.6 million the year before. The dramatic change was due to an impairment of USD88.2 million in 2019 relating to intangible exploration assets in Argentina. Operating losses for the year widened significantly to USD8.7 million from USD859,000, driven mainly by lower revenue takings.
Despite a challenging year for the firm, President generated an increase of 12% in net average production to 2,714 boepd for the year.
"We successfully controlled what we could and the key performance metrics through 2020 bear witness to this: increased average production, reduced operating and administrative costs as well as overall debt," said Chair Peter Levine.
"The energy landscape has changed even faster and more dramatically than anticipated."
Looking ahead, the company outlined a record number of wells to be drilled and an expected return to growth in 2021. Three new wells are planned to be drilled in Salta in the second half of the year, while drilling is expected to begin in the first half of 2022 at the Delray complex in Paraguay.
By Will Paige; willpaige@alliancenews.com
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