(Alliance News) - Angus Energy PLC on Friday said it swung to profit in its first-half on increased revenue, as it also met production targets.
However, the company's executive chair seemed pessimistic about the "punitive" atmosphere for hydrocarbon producers in the UK, even while predicting "steady production and cash flow" for Angus going forward.
The UK-focused onshore oil and gas company said it swung to a pretax profit of GBP115.3 million in the six months ended March 31, from a GBP31.8 million loss in the same period the previous year.
Revenue skyrocketed to GBP16.5 million from GBP27,000.
The company also made a derivative financial instrument gain of GBP121.2 million, swinging from a GBP30.5 million hit the year before.
Angus Energy said that during the period it met its production target of up to 9.5 million standard cubic feet, or just over 100,000 therms, per day.
Additionally, the company expects next week to agree a second six-month bridge facility of GBP6 million, most likely on the same terms as those for the GBP3 million facility announced in late March.
Angus Energy said the resultant working capital will allow it to close out the final rolled hedges caused by late production in the third quarter. It also will provide funding to evaluate acquisitions and develop storage facilities at the Saltfleetby gas field in Lincolnshire.
The Brockham oil field in Dorking and Lidsey in Bognor Regis are currently shut in, due to the need for essential maintenance and equipment overhauls at Brockham. Angus Energy aims to restart production in the second half of 2023.
"With the Saltfleetby project completed, we look forward to steady production and cash flow from operations," said Executive Chair George Lucan. "The new management team can now turn attention to both organic and inorganic growth opportunities."
However, Lucan also cautioned that the half year saw the energy profits levy increased to 35% among other changes to the taxation of UK oil and gas profits, which he said bring the total marginal tax rate "up to a punitive 75%".
"Moreover, little let-up is in sight for the domestic industry, onshore and offshore, with further restrictions planned by the shadow Labour cabinet in advance of elections expected in early 2025," Lucan added.
Shares in Angus Energy were down 5.1% at 1.02 pence in London on Friday.
By Emma Curzon, Alliance News reporter
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Angus Energy (ANGS)