(Alliance News) - Wentworth Resources PLC on Tuesday declared a maiden dividend payout despite posting a loss for the first half of 2019.
In the six months to June 30, revenue, which is generated solely from gas sales in Mnazi Bay, Tanzania, fell 26% year-on-year to USD8.0 million from USD10.8 million. Wentworth attributed the decline to a heavier monsoon season during the second quarter of the year.
The company made a pretax loss of USD734,000 for the first half, compared with profit of USD2.3 million in the year ago period. This was due to the revenue fall and the non-repeat of a USD2.1 million payment it received from state-owned Tanzania Petroleum Development Corp.
Average daily gas production was down 16% to 66.2 million standard cubic feet from 78.6 million standard cubic feet in 2018.
Due to the reduced production, operating costs rose by 45% to USD0.64 per one million standard cubic feet of gas versus USD0.44 per one million standard cubic feet of gas. The company maintained its revised annual guidance of 60 to 75 million standard cubic feet, it previously forecast average daily production of 75 to 85 million standard cubic feet in 2019.
In April, Wentworth closed its Mozambique operations after it relinquished its Tembo licence, its only asset in the country.
Turning to dividends, the company outlined that it would pay two dividends per financial year. The first, which in 2019 will total 0.45p per share, will represent a third of the total annual payout. A second dividend will be announced with its full-year results.
Chief Executive Eskil Jersing said: "Wentworth has been through a period of significant change corporately and financially; the first half of 2019 has seen us successfully complete our simplification mandate and prepare for a sustainable capital returns policy. We have continued to produce gas and receive associated revenues to reduce our debt and build a cash balance of USD14.2 million at the end of August.
"Our confidence in the Tanzanian demand driven landscape has enabled us to introduce a maiden dividend with an expected annual yield of roughly 6.7%; this clearly distinguishes us from our peer group, whilst we focus on securing material East African growth and returns for all our shareholders."
Shares in Wentworth were 3.1% higher at 20.10 pence each in London on Tuesday morning.