Prospex Oil Swings To Annual Loss, Sees Delays On Virus Outbreak

(Alliance News) - Prospex Oil & Gas PLC on Friday swung to a loss in 2019 and said timescales of ...

Alliance News 22 May, 2020 | 6:30PM
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(Alliance News) - Prospex Oil & Gas PLC on Friday swung to a loss in 2019 and said timescales of the work programmes it has planned is not clear due to the coronavirus outbreak.

For 2019, the exploration investment company swung to a pretax loss of GBP1.3 million from profit of GBP779,904 the year before.

The company booked a GBP473,925 loss on revaluation of investments, compared with a GBP1.7 million gain a year earlier. Meanwhile, operating income was GBP198,528 versus GBP99,729 in 2018.

Prospex said it had total assets of GBP6.3 million as at December 31. Administrative expenses were broadly flat at GBP1.1 million.

The company said the situation on the ground across its licences "will undoubtedly be fluid" while the coronavirus has a grip in the world's economy. As such, the impact on the timescales of the work programmes it has planned is not clear.

Managing Director Edward Dawson said: "Of course, there is no way of knowing what the true impact will be of the ongoing Covid-19 pandemic on the global economy and how long it will take for societies to recover. Time frames for the development of certain of our projects may well therefore have to be extended. Since the turn of year Prospex has been in discussions with the various project operators who are adjusting to the current environment and taking a cautious approach to discretionary expenditure. Prospex itself has cut costs to its general and administrative since the start of March.

"This has been helped by a one third deferment of salaries from April to last during Covid-19 lockdown. Importantly the Covid-19 situation appears to be improving in Italy and Spain and reassuringly operators report continued dialogue and progress with regulators throughout the various lockdown periods".

The stock closed down 31% at 0.09 pence on Friday in London.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Prospex Oil and Gas PLC 1.55 GBX -4.62 -
Phoenix Global Resources PLC 8.00 GBX -4.48 -

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