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IGas Energy swings to profit in 2017
Onshore hydrocarbon producer IGas Energy announced its full year results for the year ended 31 December on Wednesday, with revenues rising to £35.8m from £30.5m.
The AIM-traded company said its adjusted EBITDA fell to £9.2m from £10.2m, although it did swing to a profit after tax of £15.5m from a 2016 loss of £32.9m.
Net cash from operating activities almost halved to £6.7m from £12.4m, while its net debt was significantly reduced at £6.2m from £99.7m.
At year-end, IGas had cash and cash equivalents of £15.7m, compared to £24.9m in the prior year.
On the operational front, the company said net production averaged 2,335 barrels of oil equivalent per day for the year, down slightly from 2,355 boepd in 2016.
Operating costs for the year were $28.2 per barrel of oil equivalent, down from $28.8/boe.
The board said it currently anticipated net production of between 2,300 and 2,400 boepd in 2018, with operating expenditure of $32.5/boe.
"The expectation of ongoing free operating cash flow provides us with a solid platform and financial flexibility to execute our growth plans, as we move into a busy operational period for IGas," said chief executive Stephen Bowler.
"We have sanctioned a number of projects, including Albury and Stockbridge, and would expect to see the benefits of these projects during the latter part of 2018."
Bowler said site construction was continuing at Springs Road and Tinker Lane, and the board looked forward to progressing to drilling.
"These wells will form the foundation of a wider development in the East Midlands with the mid-term focus moving to a pilot development in the Gainsborough Trough, leveraging our existing, long standing operations in the East Midlands.
"In the North West we are progressing our application at Ince Marshes and advancing further applications.
It was the company's intention to appeal the decision of Cheshire West and Chester Council's Planning Committee of 25 January to refuse planning consent for our application to test the Pentre Chert formation at Ellesmere Port, Bowler explained.
"There is also a significant level of activity onshore UK, and over the next 12 months, the industry is expected to have a number of operators either drilling or flowing wells.
"As momentum builds across both our business and the industry as a whole, we look forward to the future with excitement as security of energy supply and diversification of the UK energy mix becomes ever more important."