However, chief executive Wale Tinubu said the half year 2019 was a positive period for the group as it achieved strong top and bottom line earnings despite its overall performance being tempered by a one-off 14bn naira charge.
“Our crude oil and natural gas production grew by 15percent and 8percent, respectively, compared to the similar period last year while we also achieved a significant reduction in our reserve based lending facility to approximately $0.4m (R5.7m) from $450m, a 99percent reduction,” Tinubu said.
The group increased its production by 8percent to 40873 barrels of oil equivalent per day (boe/day) compared to 37814boe/day while natural gas production increased by 8percent to 128533 thousand cubic feet per day (mcf/day), up from 118866mcf/day compared to last year.
Its turnover was up by 6percent to 315.4bn naira, up from 297.3bn naira compared to last year, and the group also managed to slash its total borrowing by 5percent to 200.7bn naira, down from last year’s amount of 210.9bn naira. However, the group said since financial year 2014, it had reduced its debt by 58percent from 473.3bn naira, while its upstream borrowings have reduced by 72percent from $801.6m in 2014.