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IGas Energy PLC on Thursday said it swung to an interim profit on high oil prices as Stephen Bowler departed as chief executive officer.
In the six months to June 30, the oil and gas exploration company energy swung to a pretax profit of £6.2 million from a loss of £14.2 million a year prior. Revenue nearly doubled to £30.5 million from £16.6 million.
However, net production fell to 1,865 barrels of oil equivalent per day from 2,005 a year ago. IGas blamed this on equipment failure caused by supply chain issues.
It still swung to a profit, as IGas sold Brent oil for an average of $107.6 per barrel, up 66% from $64.9 a year ago. However, it expects the price to fall to $98 a barrel for the rest of 2022, to $90 in 2023 and to $80 in the first quarter of 2024.
Meanwhile, Chris Hopkinson moved to interim executive chair from non-executive chair, after Bowler left immediately Thursday ‘by mutual consent’. IGas said it will start to look for a new CEO ‘in due course’.
‘Whilst I am disappointed not to be part of the business going forwards, I am leaving the company on a firm financial footing, remain a shareholder and look forward to the company's continued progress,’ Bowler said.
IGas Energy also promoted Finance Director Frances Ward to chief financial officer with immediate effect. Ward had joined the company in 2017 and became finance director in 2020.
‘With strong commodity prices forecast well into 2023, we expect to continue to be able to support both growth and debt reduction in the business,’ said Chair Hopkinson, adding: ‘We welcomed the [UK] government's announcement last week on the lifting of the effective moratorium on hydraulic fracturing in England and the review of energy regulation.’
IGas Energy shares were 6.0% lower at 84.45 pence each in London on Thursday at midday.
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