Union Jack Oil Reports Decline in First Half Profits
By Christian Moess Laursen
London, UK - Union Jack Oil, a London-listed energy company, has announced a decline in pretax profit and revenue for the first half of the year. The decrease is attributed to foreign exchange movements; however, the company reassures investors that its cash balance remains strong for the next 12 months.
According to the company's financial statement released on Monday, pretax profit plunged to £765,926 ($954,880) during the period, down from £2.1 million in the same period last year. Revenue also experienced a decline, dropping to £3.6 million from £4.4 million. This decrease can be attributed to the negative impact of foreign exchange movements, as well as a lower average oil price of $80 compared to $104.
Despite these challenges, Union Jack Oil maintains a solid financial position. As of September 8th, the company's cash balances, receivables, and liquid investments exceeded £9.25 million. This puts Union Jack Oil in a fully funded position for all general and administrative costs, as well as operating and capital expenses, including budgeted drilling activities for the next year.
Chairman David Bramhill expressed confidence in the company's financial outlook, stating, "Union Jack remains in a strong financial position with consistent cash flows from our flagship asset at Wressle oilfield, as well as significant future upside potential from our diverse project portfolio."
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