Providence reports net loss

Exploration company Providence Resources today reported a net loss of €6.6 million for the first six months of the year.

Exploration company Providence Resources today reported a net loss of €6.6 million for the first six months of the year.

In its interim report, the company said revenues were down at €10.5 million for the year to end of June compared to €11.2 million posted for the first half last year.

It attributed the decline in revenue to due a combination of lower commodity prices and production levels that were affected by hurricanes.

EBITDA was €5.3 million for the year to June, compared to €7.3 million for the same period last year, and €2.9 million in net cash was produced from operations, compared to a €1.5 million loss for the first half last year. There were non-cash losses of €7.5m.

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Commenting on today’s results, Tony O’Reilly, chief executive, said: “Despite the tough global economic environment, the results for the first half of 2009 demonstrate a range of successful activities across the company’s broad portfolio.

“We view the future with optimism and confidence. This is because our individual projects and our collective portfolio now exhibit a balanced risk profile . . . all backed by world class equity and financial partners,” he said.

The company yesterday announced it has secured a new $100 million financing facility with BNP Paribas.

"This demonstrates our growing maturity as a diversified E&P company, and gives us the flexibility to expand our core businesses,"