(Alliance News) - Valeura Energy Inc on Tuesday posted a narrowed loss for the first quarter of 2020, due to the lack of transaction costs as well as a foreign exchange gain, despite a decline in revenue.
For the three months to the end of March, the upstream natural gas firm reported a pretax loss of CAD119,000, around GBP68,863, narrowed from CAD2.2 million the same period the year before.
This was due to the lack of transaction costs, which came to CAD806,000 the year before, as well as a foreign exchange gain of CAD1.3 million compared to a loss of CAD349,000.
However, Valeura reported a 16% decline in revenue to CAD2.7 million from CAD3.2 million, due to lower petroleum and natural gas sales.
Operationally, net petroleum and natural gas sales for the quarter was 716 barrels of oil equivalent per day, up from 646 barrels the same period the year before, while the averaging operating netback increased to USD24.95 from USD24.53.
Looking ahead, Valeura is exploring the potential for mergers and acquisitions to grow its portfolio, in order to capitalise on the current market environment.
"Valeura remains in a strong financial position, with a gas production asset that generates cash flow even in times of economic turmoil, and significant option value on a potentially very large unconventional gas play. We will continue to closely monitor economic conditions in Turkey, and to course-correct our operations as required to protect our ongoing revenue generation. With appropriate safeguards in place, we are well positioned to ride out the current economic turmoil and expect to emerge strong," said Chief Executive Officer Sean Guest.
Shares in Valeura Energy were up 5.0% at 21.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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