(Alliance News) - President Energy PLC on Monday reported a substantial annual loss as the company returns its focus to its Rio Negro concession.
In 2019, Leeds-based President Energy sunk to a USD93.6 million loss from USD6.1 million profit in 2018.
During 2019, President recorded USD88.2 million in impairment charges compared to a USD2.6 million gain in 2018.
"Following a reduction in reserves and changes to the timing of future development plans, an impairment review was triggered on the Puesto Guardian field in Argentina. The strategic decision has been made to focus on developing the higher margin Rio Negro concessions as the Puesto Guardian concession extends through to August 2050. While the conditions that have given rise to these impairments will be reviewed in the future, there is a risk of future impairments if oil prices continue to fall," President explained.
The company's revenue slipped to USD40.8 million from USD47.2 million.
"In the face of unforeseen challenges in 2019, the company still delivered solid progress and operational profitability, with adjusted Ebitda of almost USD12 million on turnover in excess of USD40 million. The continued strength of the group can be seen demonstrated in the previously announced unaudited results for the first quarter, and in the company's resilience in navigating through the perfect storm of Covid-19 which has enveloped the whole of the world," President said.
The oil & gas company's net average production increased 6% in 2019 to 2,415 barrels of oil equivalent per day.
President's net 2p reserves in Argentina - where the company is primarily focused - increased to 25.9 million barrels of oil equivalent from 24.9 million barrels. The company's Rio Negro assets increased by 21% to 13.8 million barrels from 11.4 million barrels.
Chair Peter Levine said: "Clearly 2020 represents an entirely different and a once in a century scenario for everyone and the company is no exception. Things are radically changing in our industry. The shale boom is over for the moment and President, with its concentration only on conventional resources, is in my view on the right side of the fence."
He added: "With the world starting to unlock, we have cautious optimism that the worst, as far as President is concerned, is behind us and we look forward to rising to the challenges ahead and taking the opportunities that this year may bring."
By Paul McGowan; paulmcgowan@alliancenews.com
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