A Wiltshire-based oil and gas exploration firm has reported a return to profit.
Salisbury-headquartered Rockhopper, which is developing a major oil field off the coast of the Falkland Islands known as Sea Lion, said it made a pre-tax profit of £28.7m during 2022, compared to a £6.3m loss after tax in 2021.
The Aim-listed company said the rebound was driven by a current year tax income of £31.3m.
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Group revenue from the sale of natural gas in Italy dipped to around £564,000 from £644,000 a year earlier. Bosses said this reflected a reduction in production, offset by increased realised gas prices. The board added that following cessation of production in Italy, no future revenues were expected going forward.
Last summer Rockhopper was awarded €190m (£162m) in damages from the Italian government after the country cancelled an oil rig project in 2015. The company had been planning to build a rig in the southern Italian region of Abruzzo, but local campaigners had objected to the proposals, claiming it would destroy the environment.
Rockhopper's board said that it had seen “material and hugely impressive improvement” in the project costs and economics of Sea Lion, after agreeing a new joint venture with US gas and oil firm Navitas Petroleum.
In a transaction completed last September, Navitas acquired 海角视频-based Harbour Energy’s stake in the development project, which is 35% owned by Rockhopper. Rockhopper said the project has developed a total of 269m barrels of oil during the period.
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Chairman Keith Lough said: "The combination of a new, committed and capable partner in Navitas, a reworked hugely attractive Sea Lion development and the outcome of the Ombrina Mare arbitration sets our company up for what we believe is an exciting moment in our development. We are delighted with the hugely significant progress achieved in the last year and are convinced that we are closer than ever to unlocking the value of Sea Lion for all stakeholders."
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