Orca Sales in Tanzania Dip in Q1
Tanzania-focused Orca Exploration saw gas sales drop in the first quarter, it said on May 21, as increased rainfall led to higher hydroelectric generation, reducing gas demand in the power sector.
Orca's gas deliveries were down 8% yr/yr at 56.3mn ft3/d, causing its revenues to fall 11% to $17.7mn. Sales to Tanzania's state power company Tanesco fell, but this was partly offset by a growth in sales to Tanzania Petroleum Development Corp (TPDC) via the Mtwara-Dar es Salaam gas pipeline.
"Despite the pandemic, Tanzania remains heavily reliant on the stable supply of natural gas, to ensure not only its electricity generation but also its industrial output as the country seeks to minimise the economic fallout of the virus," CEO Nigel Friend said.
Orca operates the Songo Songo gas field in the southern area of the offshore Tanzanian Coastal basin. The company said its financial position was stable, with $82.9mn in working capital at the end of March, $98.1mn in cash and short-term investments and $54.1mn in long-term debt.
Long-term receivables owed by Tanesco fell to $37.3mn by the end of March, from $47.5mn at the start of the year. Orca submitted an invoice to Tanesco for $1.6mn in gas supplies in April and received $6.2mn in payments.