Former Aim company Hague and London Oil reported a decline in revenues in the first half of 2019, but it moved from loss to profit, but this was due to a gain on derivative instruments.
Revenues generated by the North Sea-focused oil and gas production operations dipped from £13.8m to £11.8m due to lower gas prices, partly offset by hedging. A loss of £918,000 in the first half of 2018, was turned into a pre-tax profit of £4.6m. The gain on derivatives was £4.61m.
There was a swing from cash generated from operating activities of £5.26m to an outflow of £2.68m. Net cash was £596,000 at the end of June 2019. A finance arrangement will provide the cash to finance the Andromeda well and acquire additional assets.
Hague and London is also buying a portfolio of North Sea stakes from ONE-Dyas for €8.85m. This could add up to 1,000 barrels of oil equivalent per day.
Once the deal is completed Hague and London will consider gaining another quotation following the loss of the Aim quotation in 2017.
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