Union Jack Oil PLC on Monday said its profit, revenue and earnings decreased in its latest half year, but that its balance sheet is ‘robust’ and the future ‘remains bright.’

The Bath, England-based and UK-focused onshore hydrocarbon producer said pretax profit decreased 64% in the first half of 2023 to £765,926 from £2.1 million the previous year. Revenue fell 18% to £3.6 million from £4.4 million.

Depreciation increased 25% to £1.3 million, and total administrative expenses increased 21% to £925,077.

Meanwhile, operating profit fell 68% to £653,695 from £2.0 million. Basic earnings per share dropped to 0.52 pence from 1.80p, and diluted earnings fell to 0.51p from 1.78p.

‘I am very pleased again to be able to present to the shareholders of Union Jack a positive set of half yearly results, containing several highlights of note, including a sustained profit, a strong cash position and a robust balance sheet free of debt,’ commented Executive Chair David Bramhill.

Union Jack had £6.3 million in cash and equivalents at June 30, down from £6.5 million on the same day in 2022. Cash, near-term receivables and investments total around £9.3 million, which the company attributed to contributions from Wressle and revenue from the Keddington oil field.

Union Jack said its Wressle-1 well in Lincolnshire, England has produced nearly 500,000 barrels of oil from the Ashover Grit formation since production resumed there in August 2021. It is continuing with evaluations to deliver a full field development plan, in order to maximise hydrocarbon recoveries.

Bramhill said the company ‘remains in a strong financial position with a combination of consistent cash flows, principally from our flagship asset at Wressle, plus significant future upside potential from our balanced project portfolio’.

‘The future of Union Jack remains bright,’ he added.

Shares in Union Jack Oil were down 1.1% at 19.78 pence in London on Monday afternoon.

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