Fenikso "optimistic" looking ahead to 2023 as annual loss narrows

(Alliance News) - Fenikso Ltd on Tuesday said it is "optimistic" that it can stabilise its financial position over 2023, after reporting a narrowed annual loss.

Fenikso is a Cayman Islands-based litigation asset company with an investment in oil & gas assets in Nigeria. It was previously known as Lekoil Ltd; the name change was approved at the end of December.

For 2022, the company reported a pretax loss of GBP15.4 million, narrowing from GBP326.4 million a year earlier.

It explained that the loss was primarily a result of the company's restructure and settlement agreement.

In December, Fenikso agreed to end all legal proceedings against each other and settle all claims with Lekoil Nigeria.

Under the settlement, the two companies agreed to surrender all shares in each other.

Fenikso agreed to waive all rights to repayment of debts owed by Lekoil Nigeria and Olalekan Akinyanmi, the former CEO of Fenikso.

It also said it will will grant a new loan of USD51.9 million to Lekoil Oil & Gas Investments Ltd in consideration for the transfer to LOGI of loans made to Lekoil Nigeria, the release of security related to those loans, and the waiver of any repayment due for the loans.

"The company no longer operates or oversees operations of any Oil & Gas assets in Nigeria. The principal business of the company is to manage and ensure the full recovery of the LOGI loan," the company explained.

Based on this, Fenikso chose not to declare a dividend.

Looking ahead, Fenikso said it is "optimistic" that it can stabilise its financial position over 2023 and be in a position to grow shareholder value from the cash received under the Lekoil Nigeria loan agreement.

By Sophie Rose, Alliance News reporter

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