Advertisement

Sterling Energy posts fall in first quarter profits

Sterling Energy reported a fall in first quarter profits Friday reflecting a drop in revenues from oil lifted from the Chinguetti field in Mauritania, lower prices and higher operating costs.

Sterling Energy reported a fall in first quarter profits Friday reflecting a drop in revenues from oil lifted from the Chinguetti field in Mauritania, lower prices and higher operating costs.

Profit after tax in the first three months of the year came to $0.1m, down from $3.1m a year earlier.

Advertisement - Article continues below

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $2.4m from $4.9m.

The company said profits took a hit from a rise in depletion costs as a result of higher production during the period. Production, net to sterling from the Chinguetti field, averaged 568 barrels of oil per day (bopd), compared to 401 bopd the previous year.

Results were also affected by a lower oil inventory valuation and a reduction in the reporting currency value working capital deposits held in pounds sterling following a weakening of the US dollar exchange rate.

Cash balances at the end of the quarter were $117.0m, including $1.4m of partner funds, down from the prior year's cash balance of $120.3m, including $1.7m partner funds.

"The company has large working interests in high materiality exploration and is well placed to build the portfolio using existing resources," said Chief Executive, Angus MacAskill.

"Progress continues to be made towards the drilling of exploration wells in our blocks in Cameroon and Madagascar, and we remain focused on acquiring only those ventures we believe will deliver real growth and value for our shareholders."

Shares fell 3.07% to 35.50p at 15:52 Friday.

RD

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/gold/601444/these-seven-charts-show-exactly-why-you-must-own-gold-today
Gold

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020
Visit/investments/stockmarkets/601460/disease-rioting-and-mass-unemployment-so-why-are-markets-soaring
Stockmarkets

Disease, rioting and mass unemployment – so why are markets soaring?

Despite some pretty strong headwinds in the last year, America’s S&P 500 stock index is close to all-time highs. John Stepek explains why markets seem…
4 Jun 2020
Visit/economy/eu-economy/601463/why-a-stronger-euro-is-good-news-for-investors
EU Economy

Why a stronger euro is good news for investors

The fragile state of the eurozone has for a long time brought the threat of deflation. But the ECB’s latest moves have dampened those fears. John Step…
5 Jun 2020