(Alliance News) - Coro Energy PLC on Monday reported a widened annual loss as a result of higher expenses, especially interest expense on its eurobonds.
The upstream oil and gas company posted a USD7.9 million loss for 2019, widened from USD4.5 million the previous year.
General & administrative expenses were 6.2% higher at USD5.1 million from USD4.8 million while finance expense totalled USD2.7 million compared to nothing the year before.
Of the USD2.7 million, USD2.3 million was interest on borrowings. The company completed the issue of EUR22.5 million of three-year eurobonds in April 2019. These were recognised at fair value and have been recorded at amortised cost.
Post year-end, Coro allowed the agreement for its USD6.9 million acquisition of a 42.5% interest in the Bulu production sharing contract, offshore Java in Indonesia, to lapse. Government approvals for the deal had yet to be obtained and concerns arose around the future of its operating partner as well as possible new requirements to satisfy a development plan for Bulu.
The firm has implemented cost saving measures post year-end gven the Covid-19 pandemic as well as "challenging market conditions".
"We believe that excellent opportunities in the oil and gas sector remain, particularly in strong regional gas markets like Asia; and the board remains confident we have the appropriate strategy to succeed. Whilst in the near term we have moved decisively to protect our cash resources, when capital markets reopen and the environment for M&A improves, the company will be well positioned to take advantage of the opportunities that will undoubtedly arise. In the meantime, we thank shareholders for their patience and wish them safe passage through this turbulent period," said Coro.
Shares in Coro were down 7.3% at 0.39 pence in London on Monday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Coro Energy (CORO)