IGas Energy plc’s revenue during 2020 nearly halved and debt doubled while the group increased investments and its reserves were upgraded.
The group’s full year results ended 31 December 2020 showed revenues of £21.6 million (2019: £40.9m), with average production of 1,907 boepd (2019: 2,325 boepd).
Net debt was reported at £12.2m (2019: £6.2m) and adjusted EDITDA of £4m (2019: £13.8m).
IGas recorded an underlying loss of £2.7m (2019: profit £4.6m).
Operating cash flow was £3.3m (2019: £14.3m) with cash and equivalents at £2.2m (2019: £8.2m).
The group invested £8.5m across its asset base during the year (2019: £6.4m). Budgeted capex for 2021 is £5.3m.
OPERATIONS
Net production averaged 1,907 boepd for the year (2019: 2,325 boepd) following temporary shut-ins during May and June 2020, redundancies, closure of its London offices and lower salaries.
IGas forecasts 2021 net production of between 2,150-2,350 boepd.
The group broadened its energy businesses with a geothermal acquisition in Stoke-on-Trent and a partnership with BayoTech to reform existing gas into hydrogen.
RESERVES & RESOURCES
A competent persons report (CPR) by auditors DeGolyer & MacNaughton (D&M) on an evaluation of IGas conventional oil and gas interests as of 31 December 2020.
The group’s net reserves and contingent resources as at 31 December 2020 (MMboe) were:
| 1P | 2P | 2C | |
| Reserves & Resources as at 31st Dec 2019 | 10.55 | 16.05 | 19.51 |
| Production during the period | (0.68) | (0.68) | – |
| Revision of estimates | 1.87 | 1.75 | 0.84 |
| Reserves & Resources as at 31st Dec 2020 | 11.74 | 17.12 | 20.35 |
OUTLOOK
IGas said that the pandemic continued to present a volatile and challenging trading environment and made business forecasts difficult.
The company will remain focused on cost and capital discipline while continuing to build and invest in its business for the future.
Chief executive Stephen Bowler added that he welcomed the opportunities arising from the UK’s net zero target.
“Through all of this, the underlying operations of the company remained safe and steadfast, and projects continued to be brought online.
“I am excited about the various energy transition opportunities that we have identified in our existing and new businesses.
“Our land portfolio is well suited to the development of renewable and hybrid flexible power generation and our assets have the potential for carbon storage close to emitters.”