United Oil and Gas said on Monday that 2020 was a “landmark” year for the the Dublin-based oil and gas explorer , as it became a “full cycle oil and gas company with a portfolio of production, development, exploration and appraisal assets”.
The London-listed oil and gas company reported revenues of $9.1 million in the year to December 31st 2020 (it reported no revenues in 2019), and pre-tax profit of almost $1 million, compared with a loss of $1.9 million in 2019.
United Oil and Gas, which has assets in Egypt, the UK, Jamaica and Italy, said highlights in 2020 included the completion of its “transformational” acquisition, Rockhopper Egypt, and strengthening the board and shareholder base, by welcoming new institutional investors as a result of the successful placing of Rockhopper Exploration’s 18.3 per cent shareholding.
Established five years ago by Irishman Brian Larkin, who previously held finance and commercial positions at Tullow Oil, 2020 was a "landmark year" for the company, as it positioned itself as a full-cycle oil and gas company with "strong production, diverse assets, an exceptional board and clearly defined avenues to deliver further material growth".
“These were significant achievements despite one of the toughest years for our sector and wider markets caused by the Covid-19 pandemic,” he said.
Indeed for Larkin, it was the “worst” year he has seen in his career. Crude oil fell traded at negative prices last spring as the pandemic first hit, but has since recovered to trade around $60 a barrel.
‘Very little implications’
“Thankfully, the pandemic had very little implications on operations, but the oil price was extremely difficult,” he says, adding, “The real test of your assets is how they perform in a low oil price environment. Thankfully our assets were tested but they delivered”.
Looking ahead, Mr Larkin said that the company will look to build on this success, and “driving further activity and material growth in 2021 and beyond”.
The company has raised its full year guidance to 2,500 to 2,700 barrels of equivalent oil per day (boepd), while group expenditure is expected to be about $6 million, with $5.4 million to be invested in Egypt, and $0.6 million invested in its Jamaican, Italian and UK assets .
It will be looking at organic growth in its Egyptian assets, as well as potential acquisitions outside the business.
Larkin will also be looking forward to getting back on the road, after a year of Zoom and Teams calls in what is traditionally a travel intensive business.
“We brought in an institutional investor last summer, and before that, we wouldn’t have dreamed of doing it by Zoom, but we did it on a week from my laptop which was incredible. But I do miss that personal side of business, the one to one contact,” he says.
United’s agm will be a closed event, held in Dublin on May 28th 2021.
