Providence Resources narrows losses in 2011
EXPLORATION firm Providence Resources has reported a narrowing of pre-tax losses to €5.2m in what it described as its most important years as it began a €500m drilling campaign off the coast of Cork.
Revenues for last year rose to €13.8m, compared with €11.1m in 2010, while the Barryroe well exceeded expectations.
Operating profit was down due to a €6.6m charge related to drilling at its Singleton well and write-downs in the Celtic Sea.
Chief executive Tony O’Reilly said Providence had a “very clear strategy” as well as the resources to“play a significant and defining role in developing the Irish offshore”.
According to Davy Stockbrokers, the financial picture painted by the company did not reflect that “the group is for the most part an exploration business which generates value through the drill bit and oil and gas discovery.”