(Alliance News) - RockRose Energy PLC on Monday reported a sharp rise in profit in 2019, with the firm believing it is well placed to handle the fallout caused by Covid-19.
In 2019, RockRose recorded a pretax profit of USD102,906 compared to USD7,378 in 2018.
The company's revenue rose to USD250,987 from USD153,072.
During 2019, RockRose initiated a progressive dividend policy, and expects to pay a 25 pence final dividend, taking its full year pay out to 85p.
"The success of last year has left us well placed to meet the twin challenges of Covid-19 and weak commodity prices," Executive Chair Andrew Austin said.
RockRose ended 2019 with total cash of USD375.5 million.
He continued: "The strength of the balance sheet and management action to decrease expenditure provides us with confidence we will emerge from this crisis with our financial health intact and growth prospects undimmed. We remain committed to the principle of being able to thrive throughout the commodity price cycle."
Looking ahead, RockRose has hedged about 63 million therms at about EUR0.53 per therm in 2020, about 54 million therms at EUR0.41 in 2021 and about 54 million therms at EUR0.45 in 2022.
RockRose had previously guided for 2020 production of abut 21,000 barrels of oil equivalent per day, but this is being reassessed due to Covid-19.
The company's current expectation is that capital expenditure in 2020 will be reduced by at least USD80.0 million.
Shares in RockRose Energy were 8.7% higher in London on Monday afternoon at 814.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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