Revenues from Victoria Oil & Gas, a British firm that operates the liquefied natural gas in Cameroon, declined in the third quarter of 2016, according to a note issued to investors’ attention. The group reported a turnover of $ 4.7 million for the third quarter that ended on September 30, 2016, down sharply compared to the $ 10.7 million achieved in the same period in 2015.
This counter-performance was due to two points. Already since the end of June 2016, the cost of exploration and development of the Logbaba site (Douala) having reached the stage of recovery, income from operations are now divided among all shareholders therefore the VOG receives more than its 60% participation. Then and finally the rather generous rainy season during the period in Cameroon, made ENEO, the company in charge of electricity distribution in the country less dependent on alternative sources, which impacted the Cameroon Gas sales for electric network needs.
The British company also announced major events that could impact on its future income stream. She finally reached an agreement with RSM Production Corporation, the other 40% shareholder of the Cameroonian company, with which there were differences of opinion on certain investment projects. She announced also to have continued with the expansion of its distribution network, in the industrial area of Bonabéri. Finally, she expressed that its Logbaba facilities have been doubly hit by lightning, although it has had minor impact on its cash flow.
On the London Stock Exchange where Victoria Oil & Gas is traded, the investors do not particularly reacted to this announcement. Debates continue to hover among the details of shareholders on the group’s ability to carry it to the positive net results area. Since 2011, the losses mount with a record $ 50.7 million, reached in May 2015.
These losses are related, however, because of the tax advantages under the Cameroonian gas code and possibly the operating concession contract whose terms were not made public. The VOG action in this context, was steady at 31.75 hundredths of a pound (pennies). It remains at a level above the lowest of the last 52 weeks (23 pennies) reached in January 2016, but well below its high of the same period (59.3 pennies) reached 23 February 2016.