Premier Oil yesterday announced losses of $214.7m (£137m) as the effects of over-supply in the market made their way on to another oil company’s balance sheets.
The firm’s losses came despite revenues coming in ahead of expectations at $577.
Premier said it had implemented a series of cost-cutting measures to see it through a period of low demand for oil, which is expected to persist for some time. This includes headcount reductions and improved efficiency in its helicopter operations.
The firm reaffirmed its expectation to hit oil at Solan, a new field just west of the Shetland Islands in the fourth quarter, and at another site in 2017, offering the prospect of increased production even as it, like other firms, reduces capital expenditure in an effort to reduce supply.
Premier chief executive Tony Durrant said: “With Solan on-stream later this year and Catcher in 2017, we expect both growing production and reduced debt levels. Amended financial covenants announced today provide balance sheet flexibility and demonstrate the on-going support of our capital providers. With the optionality in our portfolio, we are well placed for growth in a stronger oil price environment.”