Ophir posts $376 million pre-tax loss

London-based Ophir Energy, the developer of the Fortuna FLNG project in Equatorial Guinea, has reported a $376 million pre-tax loss for 2015 due to plunging oil prices and booking impairments against its assets.

Following the 34% reduction in the commodity price during the year, the company’s producing and development assets were impaired on a pre-tax basis by $126.7 million. In addition impairment of investments amounted to $42.1 million, Ophir said in a statement on Thursday.

Revenue for 2015 amounted to $161.1 million, as compared to $211.1 million in pro-forma revenue last year.

Outlook

Ophir said it has reviewed its plans for the remainder of 2016 and to “position itself against the possibility that the current low commodity price environment is protracted and will continue beyond the current year“.

Accordingly, the company has reset its guidance for 2016. Revenue is now forecast at $140-160 million for 2016, with cash flow from producing assets of $75-100 million, Ophir said.

Capital expenditure forecast for 2016 is revised downwards to $150-200 million.

Fortuna FLNG on track for FID in mid-2016

Ophir is expecting to make a final investment decision on its Fortuna FLNG project in Equatorial Guinea in the middle of this year.

“Clearly, the first half of 2016 will be important for the Fortuna FLNG project as we look to finalise gas off-take agreements, award EPCIC contracts for the sub-sea production system, finalise the agreement with Schlumberger, submit and receive approval of the development plan and sign the Umbrella Agreement with the Government of Equatorial Guinea,” Nick Cooper, CEO of Ophir said.

“Our Fortuna FLNG project is robust and we are confident that we will be in a position to make a FID in mid-2016 thereby leading to first production in the second half of 2019,” Cooper added.

LNG World News Staff