(Alliance News) - TransGlobe Energy Corp on Thursday reported an annual output rise but posted a fall in revenue and profit in 2019, with its average oil sale price slipping.
In the year ended December 31, revenue fell 20% to USD140.6 million from USD176.8 million. Pretax profit slipped by just shy of half to USD22.1 million from USD42.0 million.
The average realised selling price per barrel of oil fell 6.4% to USD51.10 from USD54.59.
TransGlobe declared a full-year payout of USD0.07 per share, from USD0.035 in 2018.
The company's output actually rose in 2019, by 11%, to 16,041 barrels of oil equivalent per day, from 14,439.
Sales however, edged 0.4% lower to 14,954 barrels of oil equivalent per day from 15,013.
On Wednesday, TransGlobe revised its 2020 production guidance following the fall in oil prices and the spread of the coronavirus.
The company now expects output between 13,300 and 14,300 barrels of oil per day, nudged lower from previous guidance which forecast production between 14,500 and 15,500 barrels.
Oil plunged on Monday after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets. This was after a failure by the Organization of Petroleum Exporting Countries and its allies to reach a deal to cut output.
On Thursday morning, brent was quoted USD33.38. The North Sea benchmark's year-to-date high is about USD71.
TransGlobe said on Wednesday: "Global reaction to the spread of covid-19 and the resultant reduction in oil demand has negatively affected current and future forecasts of oil prices in 2020. This has been compounded by OPEC+, led by Saudi Arabia and Russia, failing to reach an agreement on constraining output in face of lower global demand to support global oil prices and Saudi Arabia and Iraq's stated intention to discount April deliveries and increase supply into the market. Oil prices are now markedly lower than those the company used as the basis for its 2020 capital program."
Shares in the company were untraded on Thursday morning in London, last quoted at 70.50 pence each.
By Eric Cunha; ericcunha@alliancenews.com
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