Victoria Oil & Gas PLC - gas producer and distributor with operations in Cameroon - Issues a warning note describing "material uncertainties" relating to events that may cast doubt upon the company's ability to continue trading. However, it says that it considers the "likelihood of these uncertainties eventuating to be unlikely", and is "confident additional funding can be accessed should it be required".
Victoria posts revenue for 2020 of USD13.2 million, 37% lower than USD20.8 million the previous year. Meanwhile pretax loss narrows to USD8.8 million from USD112.0 million the year before. The significant difference in the loss is due to a non-repeat of any impairment charges compared to the USD95.8 million impairment of assets in the prior year. The company says the financial performance in 2020 is obscured by a number of long-running unresolved issues including settlements with ENEO and CHL, and the separation of business with Societe Nationale Des Hydrocarbures.
"2020 has felt like the bottom of the curve for the company," Victoria said. "The severity, length and ultimate impact of the pandemic remain uncertain; however, as the global response to the pandemic continues, including mass vaccination campaigns, there is an expectation that economies will begin to recover throughout 2021 and 2022, bringing with it the fundamental drivers for energy demand."
Current stock price: 4.22 pence, down 20% on Tuesday
Year-to-date change: down 0.7%
By Will Paige; willpaige@alliancenews.com
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