IGas Energy plc swung to a profit and reduced debt following “exceptionally strong” commodity prices for its onshore oil and gas assets in England and Scotland.
FINANCES
In the company’s interim results to six months ended 30 June 2022, interim executive chairman Chris Hopkinson also called for streamlined regulations for shale gas following the Government lifting the ban.
IGas’s H1 2022 report showed post-tax profits rose to £19.4 million (H1 2021: loss £12.2m).
Revenues increased to £30.5 million (H1 2021: £16.6m) and adjusted EBITDA was £10.7m (H1 2021: £2.7).
Operating cash flow (before working capital movements and realised hedges) rose to £16.4m (H1 2021: £6.4m).
The company’s capex totalled £2.8m during six months to 30 June 2022 and it expects net cash capex for FY 2022 to be £10.2m, primarily relating to conventional assets.
IGas reduced its net debt of £9.7m (H1: £13.2) and held cash and equivalents of £2.7m (H1 2021: £2.1).
For H1 2022, the company estimates it will pay £200,000 under the energy profits levy.
OPERATIONS
IGas’s net production fell to an average 1,865 boepd in H1 2022 (H1 2021: 2,005 boepd) which was a result of equipment failure following supply issues relating to Covid-19.
GUIDANCE
The company now forecasts full year net production to be in the range of 1,900-1,950 as it resolves the issues in H1 and wells come back on-line.
IGas added it continued to mature growth opportunities within its existing conventional assets, including the East Midlands projects at Corringham and Glentworth.