Atlantic Petroleum P/F reported a net profit of DKK1.4mn ($0.2mn) for the 2024 fiscal year, compared to a loss of DKK20.7mn in 2023, according to annual results released on April 30. The Faroese group continues to face negative equity while pursuing a debt restructuring plan aimed at stabilising its financial position.
Debt reduction dependent on final agreement
Management announced a preliminary agreement with its main creditors, Betri Banki and London Oil and Gas (in administration), to reduce the company’s debt by at least DKK90mn ($12.8mn). The agreement, signed on April 4, is not yet finalised but is expected to be completed in May, according to the company.
Mark T. Højgaard, Chief Executive Officer, stated that the company’s focus in 2024 was “on finding a solution for the bank debt and the convertible debt.” The finalisation of this agreement will determine the group’s ability to continue operations, which also rely on revenue from its interest in the Orlando oil field in the North Sea.
Stable results but a fragile financial structure
General and administrative expenses rose slightly to DKK2.4mn ($0.34mn), compared to DKK2.3mn in 2023. No revenue or exploration expenses were recorded in 2024, and the pre-tax loss stood at DKK2.4mn, a significant improvement from the previous year.
Operating cash flow was DKK0.5mn, down from DKK1.7mn in 2023. Cash and cash equivalents were completely depleted by the end of 2024, compared to DKK1.1mn at the close of the previous year.
Equity remains negative despite profit
Group equity remained in negative territory, standing at DKK-112.8mn at the end of 2024, compared to DKK-115.9mn a year earlier. Despite the reported net profit, the company has not yet reversed its financial trajectory.
“General costs remain on a very low base,” said Mark T. Højgaard, adding that the company’s cost structure remains stable. Atlantic Petroleum does not plan any exploration activity for the current year and is focused on stabilising its short-term financial commitments.
