Diversified Gas & Oil profit slumps on higher costs

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OIl & gas company Diversified Gas & Oil said annual profit nearly halved as a jump in costs jumped offsetting a sharp uptick in revenue.

For the year ended 31 December 2019, pre-tax profit fell to $131.5m from $261.8m on-year even as revenue rose to $462.3m from $289.8m as the company produced 94.8m barrels of oil per day from long-lived wells.

The operating expense jumped to $202.4m from $107.8m.

Looking to the current year, the company highlighted a number of headwinds including weakness in natural gas prices due to excessive supply growth, a mild 2020 winter season. But said it would look to reduce our unit cost expenses, and wise capital allocation to ensure that every dollar spent earns an appropriate return.

At 8:36am: (LON:DGOC) Diversified Gas Oil PLC share price was -8.4p at 64.2p