(Alliance News) - Phoenix Global Resources PLC on Friday shared that 2021 was a year of strong growth as it narrowed its loss, but said the future is dependent on securing further investment.
The Argentina-focused independent oil and gas explorer said revenue in 2021 jumped 45% to USD78.4 million from GBP54.0 million a year prior.
Pretax loss was narrowed substantially to GBP29.3 million from GBP235.0 million.
Average daily sales in the year were 4,425 barrels of oil equivalent per day, a 17% increase year-on-year.
Although the lifting of Covid restrictions had boosted activity levels, the company now states the conflict in Ukraine has worsened the global economic outlook. This has specifically hit Argentina hard, as a country that is already in its fourth year of recession.
"The underlying economic indicators are not encouraging," Chair Michael Rake commented.
Phoenix boasts good assets, but notes that "significant investment" is required to develop them.
Phoenix's major shareholder, Mercuria Energy Group Ltd, remains "supportive" of its plans, the company said, having extended short-term debt facilities to fund operations. Talks between the two companies are still ongoing to restructure the debt facilities, but these are not expected to conclude until later in 2022.
"[If] the company is unable to restructure the existing loan agreements from Mercuria or obtain funding from alternative sources, this gives rise to a material uncertainty that may cast significant doubt on the group's and company's ability to continue as a going concern," Rake continued.
Shares in Phoenix Global were untraded at 3.81 pence in London on Friday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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