Empyrean Energy PLC on Friday reported its annual loss widening as impairment costs shot up amid a costly cyber fraud.
Pretax loss in the year that ended March 31 widened to $8.1 million from $953,000 a year prior. It posted no revenue either year..
Empyrean Energy shares fell 9.7% to 0.99 pence each in London on Friday morning.
Impairment costs of oil and gas properties increased to $4.1 million from $3,000. ‘Impairment tests are carried out on a regular basis to identify whether the asset carrying values exceed their recoverable amounts. There is significant estimation and judgement in determining the inputs and assumptions used in determining the recoverable amounts,’ the company said.
Further, Empyrean posted a one-off cyber fraud loss of $2.0 million compared to no such cost a year ago. The company explained that it had made payment as part of drilling contract, but this wasn’t received by its partner. Instead, it ‘had been paid to a fraudulent third party as a result of an impersonation fraud perpetrated against the company’.
Chair Patrick Cross said: ‘Empyrean retains a positive outlook for the future and is setting its sights on value creation from Indonesia and the further de-risked drill opportunity in China.’
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