(Alliance News) - Union Jack Oil PLC on Monday said it remains "in sound financial health" and the future "remains bright", although earnings plunged in its latest financial year.

The oil and gas company, which is focused on onshore US and UK assets, said pretax profit for 2023 fell 56% to GBP1.4 million from GBP3.1 million in 2022. Basic earnings per share plummeted 75% to 0.79 pence from 3.20 pence, while diluted EPS fell to the same amount from 3.16 pence.

Union Jack said that revenue, meanwhile, dropped 40% to GBP5.1 million from GBP8.5 million.

Executive Chair David Bramhill, however, commented: "Union Jack remained profitable, despite lower oil prices and weaker exchange rates compared to 2022, as well as a near three-month shutdown at Wressle, whilst a downhole pump was installed and other significant site upgrades were carried out.

"This demonstrates the durability and dependability of the company's key project and the prudent management of our cash resources."

Earlier in May Union Jack had declared a 0.25p per share final dividend, with payment due in July.

"The board's confidence has once again been supported by the company's solid 2023 financial results, confirming its resilience, both financially and operationally," commented Bramhill. "In the UK, Union Jack will remain focused on the development of its flagship project, Wressle...there remains significant material upside which will support the company with revenues for at least another decade."

He added: "I am confident that the significant increase in drilling, appraisal and development activity now planned in the pursuit of growth from our balanced UK and USA portfolios has the potential for significant value creation...Overall, Union Jack is in sound financial health with a robust balance sheet and continues to be debt free. The future of Union Jack remains bright."

Shares in Union Jack were down 2.1% at 23.50 pence on Monday afternoon in London.

By Emma Curzon, Alliance News reporter

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