Falling oil prices hit Providence revenue

Providence Resources said revenue fell last year as oil prices declined and production was hit by bad weather.

The company said revenue fell to €21.1 million in 2009 from €24.8 million a year earlier, but net loss narrowed to €9.8 million compared to €51.2 million in 2008. Operating losses fell to €1 million from €42.2 million in 2008.

Annual production at the exploration firm grew to 557,927 barrels, up 28 per cent from 2008's figure of 433,625.

Chief executive Tony O'Reily described the results as a "solid operational performance" in 2009.

"Looking ahead, 2010 is a key year for Providence with a number of projects now advancing to the drilling stage," he said.

"This, combined with a growing production base, and the potential to realise the value being created in both our Eirgas gas storage and Exola heavy oil interests, gives us real confidence for the future."

The group had borrowings of €80 million at the end of th year, with a new loan facility from BNP Paribas accounting for much of this. It raised a total of €33.2 million from equity issues in June of last year and February 2010.