Victoria Oil & Gas revenues halve but cost-cutting efforts narrow pre-tax losses

Victoria Oil and Gas saw revenues halve in its last trading year, but a recently implemented cost-cutting programme helped the firm narrow pre-tax losses.

Revenues fell 54% to $10.8m and the group recorded a loss before interest, taxes, depreciation and amortisation of $530,000 for 2018, versus earnings of $4.59m in 2017.

Gas sales dropped 62% as average daily production tumbled 66% to 3.75 million standard cubic feet per day.

However, although gas sales were down, the company turned its attention to cutting costs, reducing outgoings by 24% year-on-year, leading the group to a 22% narrowed pre-tax loss of $8.3mm.

VOG also expanded its client book, adding eight additional customers - taking its tally to a total of 39.

Looking forward, the company said it was somewhat back on "the right track", with ENEO, the Cameroonian power firm with which it recently reached an agreement to restart gas supply, taking more than 5.5m cubic feet of gas per day, sending its average group production rate for the year-to-date up 127% to 10.10m cubic feet per day.

New chairman Roger Kennedy said: "The company is for the first time in many years on the right track with lower costs, a better-defined strategy, and the leadership to deliver value to shareholders.

"2018 was a difficult year accentuated by past mistakes; however, the events since the year-end, with the injection of new capital by significant shareholders backing our business model, board and management changes, production levels increasing, and a strengthened financial position, ensures that the future looks brighter for shareholders."

At 1050 BST, Victoria shares were up 0.57% at 12.44p.