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Cameroon-focused oil company Victoria Oil & Gas posted a deep annual loss after it wrote down the value of its assets following the termination of a key supply contract.
Pre-tax losses for the year through December 2019 amounted to $112.0 million, compared to losses of $8.3 million year-on-year, and included $95.8 million of asset impairments.
Victoria Oil & Gas said the impairments reflected a reserves downgrade, termination of the gas sales agreement with ENEO and deteriorating conditions in the Cameroonian energy sector.
Revenue almost doubled to $20.8 million, up from $10.8 million, as the company continued to invoice former customer ENEO, which had stopped buying gas in September 2019.
The company said it had continued to invoice ENEO until June 2020, at which point the gas sales agreement was terminated.
Excluding grid revenue, thermal and industrial power revenue contributed $12.0 million, a 19% increase that the company said reflected efforts made to expand the customer base in the prior year when ENEO was not consuming gas.
Condensate revenue of $0.8 million reflected the increased volumes of gas sold, but had also suffered as a result of a fire at the Sonara refinery.
'I assumed the role of executive chairman in April 2019 to install a new senior management leadership team and to resolve the legacy issues facing Victoria Oil & Gas,' chairman Roger Kennedy said.
'Whilst this journey continues to be one of transition, I believe we are making strong progress and have made key strategic and corporate decisions that will benefit the future of this company.'
At 9:31am: (LON:VOG) Victoria Oil Gas PLC share price was -0.15p at 2.71p