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Victoria Oil & Gas interims confirm substantially improved performance after ENEO supply resumed

Daily production rates improved by some 190% while revenue jumped to US$10.68mln.

Victoria Oil & Gas PLC - Victoria Oil & Gas interims confirm substantially improved performance after ENEO supply resumed

Victoria Oil & Gas PLC’s (LON:VOG) half yearly numbers revealed a substantial improvement, as expected, thanks to the restart of sales to its key customer, a neighbouring gas-fired power plant.

Supplies to ENEO, Cameroon’s national power utility, restarted in December 2018.

Subsequently, in the first six months of this year, gross gas sales from the Logbaba field amounted to 1.78bn cubic feet for the six months ended 30 June, versus 650mln in the same period of 2018.

Sales to thermal gas and industrial power customers both increased (to 731mln and 50mln cubic feet, from 619mln and 31mln), but, the most significant change was the supply of just over 1bn cubic feet for grid power generation where there had been none in the comparative period.

READ: VOG surges as it inks supply deal with Aksa Energy

VOG generated some US$10.68mln of revenue in the six months ended 30 June, marking a rise from US$5.01mln in the comparative period of 2018.

Daily production rates improved by some 190%, to 9.9mln cubic feet per day, thanks to ENEO supply coming back online as well as the addition of new independent customers – and, during the subsequent reporting period, the company has signed a deal with Aksa Energy which sees up to 25mln cubic feet per day sent to a planned 150MW power stations.

“Signing of the term sheet with Aksa Energy is very positive and bringing that to fruition alongside additional increasing production with thermal customers will be the focus over the coming twelve months,” said Roger Kennedy, executive chairman.

Kennedy became chairperson formally in April as predecessor Kevin Foo stepped down at the company’s AGM, and a number of other management changes also took place during the half year with John Daniel and John Knight joining as non-executive directors.

Financial results

The company reported a US$6.79mln operating loss, including some US$4.91mln as depreciation, a US$5.55mln impairment on an investment and spent US$6.7mln on admin expenses.

VOG reported a US$5.88mln gross profit from continuing operations. Earnings (underlying EBITDA) was stated as US$3.76mln compared to just US$27,000 in the first half of 2018. And, it reported a US$7.75mln loss before tax.

It had some US$14.38mln of cash and equivalents at the end of June.

Quick facts: Victoria Oil & Gas PLC

Price: 5.266 GBX

Market: AIM
Market Cap: £13.53 m

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