Profits Soar at Ukraine's JKX

Ukraine-focused JKX Oil & Gas posted a pre-tax income of $30.4mn for 2019, up from $14mn in the previous year on the back of higher production, it reported on March 31.

Revenues were up 9.7% at $101.7mn, thanks to a 20% growth in its average output to 10.748 barrels of oil equivalent/day. Production soared by more than 50% in Ukraine, where the company operates a cluster of gas fields in the country's east, while its output in Russia was stable.

JKX says it is in a strong position to weather the downturn. It ended the year with $20.6mn in cash, up from $19.2mn at the end of 2018, and as of February is debt-free after making a final bond payment.

"2019 was another year of achievement for JKX. Despite the collapse in commodity prices our strong production results allowed us to report healthy profit and cash flow for the second year in a row," CEO Viktor Gladun said.

JKX's focus for 2020 will be on completing a well workover campaign in Russia, he said, adding that the firm was in a "suitably stable" financial position to weather the Covid-19 crisis.

JKX agreed terms in early March for the sale of its Hungarian subsidiary for $2.9mn – funds which it plans to re-invest in its core Ukrainian operations. And in late March it reported victory in two more cases against Ukrainian tax authorities, meaning it no longer has to pay $4.5mn in penalties.