LONDON (Alliance News) - Wentworth Resources Ltd said Thursday its 2018 loss widened sharply despite growth in revenue and increased production, due to an impairment on the loss of certain assets.
For the year, the gas production company reported a pretax loss of USD48.4 million, widened from USD315,000 the year before, mainly due to a USD41.6 million impairment on exploration and evaluation assets, as well as a USD5.0 million provision for Tanzanian government receivables.
Meanwhile, revenue grew to USD16.2 million from USD13.4 million the prior year, helped by higher gas sales from the Mnazi Bay gas field in Tanzania.
Operationally, Wentworth's average gross daily gas production increased sharply by 70% to 83.2 million standard cubic feet per day, up from 49.1 million cubic feet the year before, and above the company's guidance of 65 million to 75 million cubic feet.
Looking ahead, Wentworth said it is on track to relinquish the Tembo block on Mozambique ahead of the end of the appraisal term on June 15.
The company expects 2019 to be a year of Wentworth increasing the strength of its balance sheet.
"2018 saw us make material progress in simplifying our business and portfolio," said Chief Executive Officer Eskil Jersing.
"We continue to work diligently with all our Tanzanian stakeholders in unlocking the latent value of the Mnazi Bay. Wentworth will continue to improve its fundamentals through 2019; and the board of Wentworth remains focused on its stated strategy of revenue stream diversification and maximising returns for shareholders," Jersing added.
Shares in Wentworth Resources closed 0.9% lower at 21.30 pence on Thursday.