The UK’s largest producing onshore oil producer lost more than £100m last year, according to company accounts.
Perenco UK Limited, which also produces gas from the southern section of the North Sea, announced a pre-tax loss of £101.732m.
This was down slightly on the loss of £113.238m in 2019 and was because of reduced operating costs and depletion charges, the accounts said.
Revenue from oil and gas were both down by more than a third on 2019.
Wytch Farm produced more than 84% of UK onshore oil in 2020, exceeding 730,000m3. But 2020 saw the sixth consecutive annual fall in production at the field and the lowest yearly volume since 2011.
An impairment reversal – where an asset can be declared valuable when it was previously declared a liability – was recognised for Wytch Farm. The figure of £24.5m represented a full reversal of all previous impairments, the company said.
Perenco said it claimed £473,000 in Covid-19 furlough payments. It made charitable donations of £24,000, down from £2,608,000 in 2019.
Loss before tax: £101.732m (2019: £113.238m)
Operating loss: £73.843m (2019: £78.119m)
Loss for the financial year: £47.582m (2019: £59.885m)
Net liabilities: £24.211m (down from net assets of £20.948m in December 2019
Cash at bank and in hand at the end of the year: £4.813m (2019: £8.151m)
Revenue from oil sales: £166.914m (2019: 253.586m)
Revenue from gas sales: £141.894m (2019: £245.095m)
Cost of sales: £430.276m (2019: £641.563m)
Depletion, depreciation and amortisation: £163.803m (2019: £343.894m)
Admin expenses: £5.177m (2019: £9.357m)
Average monthly number of staff: 745 (2019: 766)
Staff costs: £74.778m (2019: £77.422m)
Directors’ remuneration: £4.721m (2019: 2.590m)
Charitable donations: £24,000 (2019: £2,608,000)
Furlough payments: £473,000
Immediate parent company: Perenco Petroleum Limited, a company incorporated in The Bahamas.
Ultimate controlling party: Perenco International Limited, a company incorporated in The Bahamas. Controlled by the Perrodo family and trusts.