London fuel company goes from £5m loss to £15m in a year

A London-based oil company has reported that its profit for the year hit £15m.

Independent Oil and Gas (IOG) announced its full year results today, and reported a £20m increase in profits, up to £15m from a loss of £5.6m in 2018.

During the year, IOG completed the acquisition of the onshore Thames Reception Facilities at Bacton Gas Terminal.

The company’s cash balance at the end of the period was £98.3m up from £0.7m in 2018.

Andrew Hockey, CEO of IOG, commented: “After a very successful 2019, and despite the unfolding COVID-19 pandemic, we at IOG are looking forwards from a position of fundamental strength to continuing our project execution throughout 2020.

“The two major financial highlights of last year, the £165m farm-out to an exceptionally strong partner in CalEnergy Resources and the €100 million bond raise, enabled us to sanction Phase 1 of our substantial UK Southern North Sea Core Project.

“With funding in place we are firmly focused on cost-effective Phase 1 development execution as well as adding high-return incremental opportunities.

“In 2019 we consolidated our competitive advantage in owning our infrastructure with the important acquisition of the Thames Reception Facilities at Bacton.

“We also safely drilled the Harvey appraisal well, demonstrating our operating capability and the potential to access additional resources and increased shareholder returns through our gas hub strategy.

“The tangible progress made in 2019 reflects both our resilience in overcoming challenges and our drive to seize new opportunities.

“Such attributes will again prove crucial in this time of unprecedented upheaval.

“With a strengthened team and a robust low-cost portfolio benefitting from very low carbon intensity, we are well placed not just to survive but to thrive by investing through this cycle.

“With our balance sheet strength, commitment to the project and CER partnership, we are well positioned to reduce costs in the current low commodity price environment.”

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