Wentworth raises profit from Tanzania's gas
Tanzania-focused Wentworth Resources reported April 21 a net profit of $3.4mn for 2020, up from $2.4mn in 2019, despite the effects of the COVID-19 pandemic on demand in the east African country. Revenues of $18.9mn were also up, from $18.6mn the year before, underpinned by long-term fixed gas price contracts, it said.
Adjusted earnings before interest, taxes, depreciation, amortisation and exploration (EBITDAX) were $9.7mn, up from 2019's $8.8mn.
Production from its onshore Mnazi Bay field, operated by Indonesia-owned Maurel & Prom, is all sold to state entities on a take-or-pay contract. It averaged 65.5mn ft³/day, down from 70.3mn ft³/d in 2019 owing to lower industrial demand, which had been factored into the guidance for the year. However the capacity to produce over 100mn ft³ has been proved, with March 2021 seeing average of 101mn ft³/d. It also this year produced a record 110.65mn ft³/d.
CEO Katherine Roe said: "Despite the challenging macro-economic and industry backdrop, Wentworth has proven itself to be resilient. The corporate transformation that has been underway has made our fundamentals stronger – with no debt, fixed price contracts, a simplified corporate structure and ongoing cash generation. Having returned $3.0mn to shareholders in 2019, I’m delighted that despite facing the greatest post-war crisis history has ever seen, we are set to increase our returns for 2020 by distributing a further $3.8mn."