Perenco UK fell to losses of £113.2million for the period prior to the outbreak of the Covid-19 pandemic.
The pre-tax deficit has been reported for the firm’s 2019 accounts, which were hit by a 42% drop in commodity prices from the prior year.
By contract, in 2018 the Perenco UK North Sea business reported profits of £250.9million.
Meanwhile revenues were also hit hard at £558.3m, down 27% from £766m.
The period was before the Paris and London-headquartered operator felt any of the effects of the virus, which has hit the industry hard in 2020.
Perenco UK cautioned that gas prices have fallen by around 52% so far this year as a result of Covid-19 and “if oil and gas prices remain at or below currently prevailing levels” then it may impact its future results.
In response to the outbreak the firm said “critical supply chains have been evaluated and where necessary strategic stock levels and communications with suppliers increased”.
It has also encouraged staff to work from home where possible, implemented social distancing at its sites and segregated workers where it can.
The firm’s main assets are focussed on the Southern North Sea, where it accounts for more than 10% of the UK sector’s well stock across 40 fields, according to Perenco’s website.
Last year Perenco sanctioned a project to extend the life of the Leman and Inde fields, with work on that expected to remain “consistent” in 2020, according to the accounts signed last month.
Perenco Decommissioning
One of the main tasks for the business is to reduce its bill for decommissioning which is expected to be around £1.54bn between 2020 and 2035 across its subsidiaries.
Director Arnaud Le Blanc said cost control remains a “core approach” and Perenco is working on meausres to bring “sustained reductions in decommissioning costs”.
He added: “The Group is progressing the decommissioning of those assets which are unecomomic or will become uneconomic due to declining production or requite integrity led investment.”
In April the firm submitted plans to decommission four platforms at the Amethyst field, around 25miles of the Easington Terminal on the Yorkshire coast.
Perenco also operates Wytch farm, the UK’s largest onshore oil field in Western Europe, and the Bacton Gas Terminal.
Perenco UK employed 766 people on average throughout 2019, the majority being in operations.
Recommended for you
