(Alliance News) - San Leon Energy PLC on Monday said it swung to a loss in the first half of 2019 due to an impairment on Barryroe and more substantial finance income the year before.
The company's pretax loss for the six months ended June 30 was USD11.9 million, reversing an USD8.0 million profit the year before.
This was due in part to a USD17.9 million impairment over delays in the operator completing the farm out for Barryroe field in offshore Ireland, compared to a USD1.5 million gain on such movements the year before. The carrying value of Barryroe has not been impaired by a total of USD33.2 million.
This combined with a more than halving of finance income to USD10.1 million from USD23.0 million a year before to create the swing to loss.
Revenue from contracts with customers rose 36% to USD176,000 from USD129.000.
In the first half of 2019 the company received USD37.8 million relating to payments under USD174.5 million of loan notes. This was comparable to USD37.7 million is the first half of 2018. San Leon is set to be repaid further under the loan notes, with the remaining balance being USD133.8 million.
Further, the company intends to declare its first dividend "in due course".
Chief Executive Oisin Fanning said: "The company's finances and outlook have been transformed with seven quarters of payments to satisfy the principle and accrued interest due from the USD174.5 million MLPL loan notes. Eroton continues to progress operationally to target delivering returns from OML 18. Following the March 2019 share repurchase, the company anticipates distributing cash to shareholders in the form of dividends, and expects to announce its first dividend in due course."
Shares in San Leon were up 0.6% at 27.16 pence in London on Tuesday afternoon.
By Anna Farley; annafarley@alliancenews.com
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San Leon (SLE)