(Alliance News) - Gulf Keystone Petroleum Ltd on Wednesday said it showed "resilience" during "extraordinary" global challenges during 2020 despite swinging to a loss.
The oil company focused on the Kurdistan region of Iraq swung to a 2020 pretax loss of USD47.0 million from a USD43.3 million profit in 2019, while revenue fell 48% to USD108.4 million from USD206.7 million. These decreases were driven by a decline in Brent oil prices that averaged USD42 per barrel in 2020 compared to USD64 per barrel in 2019, it said.
Gulf Keystone said average 2020 output was 36,625 barrels of oil per day, exceeding the top end of its revised guidance range and its highest average annual production rate to date from the Shaikan oilfield. It achieved an average of 32,883 barrels per day in 2019.
"Against the backdrop of extraordinary global challenges in 2020, GKP acted decisively to successfully manage the impact of Covid-19 on our staff, contractors and production operations. We achieved all of our cost reduction targets and annual average production of 36,625 barrels of oil per day, 11% higher than 2019," said Chief Executive Jon Harris.
Looking ahead, Gulf Keystone said it has had a "strong" start to 2021 and plans to resume expansion of drilling activity in the third quarter of 2021.
It has set a target of achieving average daily gross production of 40,000 to 44,000 barrels of oil per day in 2021 and is on track to meet this guidance, having delivered average production for the year to March 29 of 43,190 barrels of oil per day.
"Average gross production from Shaikan in 2021 to March 29 is 43,190 barrels of oil per day, up 13% from the corresponding period in 2020. Recently, we resumed the 55,000 barrels of oil per day investment programme and today we are pleased to be announcing the reinstatement of at least a USD25 million annual dividend, in keeping with our commitment to balance investment in growth and returns to shareholders," said Harris.
The proposed annual dividend is still subject to shareholder approval.
Shares in Gulf Keystone were down 0.8% at 177.80 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Gulf Keystone Petroleum (GKP)