Loss widens for Canada’s Pieridae Energy in Q4

Canada’s Pieridae Energy, which is developing the 10mn mt/yr Goldboro LNG project on the country’s east coast, said March 25 it had a C$45.97mn (US$36.53mn) net loss in Q4 2020, about C$20mn more than net losses in both Q3 2020 and Q4 2019.

Net operating income in Q4, however, increased to C$12.8mn from a loss of C$646,000 in Q3 2020. In Q4 2019, Pieridae reported net operating income of C$24.5mn.

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Net operating income for 2020 more than doubled, to C$50.7mn from C$25mn in 2019, largely due to a full year of production and revenue from the southern Foothills assets acquired from Shell Canada in October 2019. However, net loss for the year widened to C$100.7mn from C$71.6mn.

“Our financial results demonstrate the impacts of Covid-19 during one of the harshest years on record in the energy industry plus the reality of the costs of developing a multi-billion-dollar LNG project, costs that must be expensed until Pieridae reaches a successful financial investment decision (FID) for the project,” the company said.

Pieridae is awaiting a comprehensive engineering, procurement, construction and commissioning (EPCC) execution plan from Goldboro contractor Bechtel by the end of March and a final lump sum, turnkey EPCC contract price proposal by the end of May. It is targeting FID by June 30 on the estimated C$9bn project. 

Natural gas production averaged 212.2mn ft³/day in Q4 2020, up from 184.1mn ft³/day in Q3 and from 204.3mn ft³/day in Q4 2019. Production of about 800mn ft³/day is needed to fill the first 5mn mt/yr train at Goldboro.