Amerisur Resources swings to loss in 2015

The AIM-traded firm reported revenue of $61m for the year, down from $199m in 2014. Its gross profit before amortisation and depreciation was $12m, down significantly from $102m in 2014.

It made an operating loss of $24m, down from a $69m profit, with a loss before tax of $25m, compared to a $47m profit in 2014.

Amerisur’s non-cash amortisation charge increased to $23m following the reduction in reserves at the start of the year, the board said.

Its cash position at year end was $42m, with no debt.

"2015 was another busy year for the company with significant cost reductions delivered early to help preserve the its cash position, a broadening of the asset base through opportunistic low cost acquisitions and a focus on executing the OBA pipeline, a strategically important regional asset,” said Amerisur chairman Giles Clarke.

“In the face of the rapidly falling oil price, the company revised its operating activity plan in early 2015 to fit the lower oil price environment and to ensure its healthy balance sheet and track record of excellent capital discipline was maintained while protecting the valuable reserve base. As a result production was constrained at, 4,350 bopd.”

Clarke said excellent progress was made with the OBA pipeline, which was expected to be operational shortly. Once operational, he said the economics of the firm’s production would improve dramatically, with cash operating costs per barrel anticipated to reduce significantly over a period of time as production ramped up.

"The company has a busy 2016 work programme across its portfolio following the successful $35m placing in March, with the objective of leveraging the OBA pipeline, increasing reserves and production while maintaining the high levels of capital discipline shown to date by Amerisur,” he concluded.

Shares in Amerisur were trading above and below the line throughout the day, and at 1545 BST were up 0.53% at 28.65p.