Lekoil swings to FY loss on increases costs and lower revenues

26th Aug 2020 10:53

(Sharecast News) - Oil and gas producer Lekoil swung to a loss in 2019 as higher costs and lower revenues weighed on its performance.
Lekoil posted a pre-tax loss of $4.9m for the year ended 31 December, a marked turnaround when compared to the profit of $2.3m recorded a year earlier, while revenues fell to $42.0m from $48.7m.

The AIM-listed group also stated that annual production had slimmed down to 759,666 barrels of oil from 780,500 in the prior year.

Lekoil said it was now targeting an immediate reduction of at least 40% in general and administrative expenses per year following a significant drop in oil prices during the first half of 2020.

Chief executive Lekan Akinyanmi said: "The priority for 2020 is to advance towards the start of the drilling programmes at both Otakikpo and Ogo in OPL 310.

"The next two years will prove to be transformative and provide key catalysts for value appreciation for shareholders through the drill bit as we advance in building a leading Africa-focused exploration and production business."

As of 1050 BST, Lekoil shares were down 5.45% at 2.60p.