JKX Oil & Gas plc reported unaudited preliminary consolidated earnings and operating results for the year ended December 31, 2017. For the period, the company reported revenue of $76,436,000 compared to $73,848,000 a year ago. Profit from operations before exceptional items was $7,847,000 compared to loss of $3,930,000 a year ago. Loss from operations after exceptional items was $13,228,000 compared to $34,754,000 a year ago. Loss before tax was $16,047,000 compared to $38,153,000 a year ago. Loss for the year attributable to equity shareholders of the parent company was $17,663,000 compared to $37,115,000 a year ago. Basic and diluted loss per share before exceptional items was 0.41 cents against 4.34 cents a year ago. Basic and diluted loss per share after exceptional items was 10.26 cents against 21.56 cents a year ago. Net cash generated from operating activities was $11,030,000 compared to $14,636,000 a year ago. Purchase of intangible assets was $9,581,000 compared to $90,000 a year ago. Purchase of property, plant and equipment was $7,131,000 compared to $7,366,000 a year ago. Net debt as at December 31, 2017 was $9,207,000 against of $2,527,000 a year ago. Pre-exceptional earnings before interest, tax, depreciation and amortization were $25.3 million against $15.8 million a year ago. Capital expenditures were $16.7 million against of $7.5 million a year ago.

In 2017 group average production was 8,658 boepd against 10,083 boepd a year ago, comprising of 47.2 MMcfd of gas against 54.7 MMcfd a year ago, and 784 bpd of oil and condensate against 967 bpd a year ago, an overall reduction in production of 14%. The decline in gas production was mainly attributed to Well 25 being offline in Russia for 4 months due to a fire on the workover rig. The remaining drop in gas production was due to ongoing decline in the Elyzavetivske field in Ukraine. The reduction in group oil production was due to the decline of IG132 in the Ignatovskoye field in Ukraine.

The company will see a gradually improved cash flow through the second half of 2018 as the revised strategy starts to yield results.