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San Leon losses deepen on expected credit provision

By BFN News | 07:54 AM | Friday 25 September, 2020

Oil company San Leon sank deeper into the red after it booked an expected credit loss related, in part, to falling crude prices. Pre-tax losses for the six months through June amounted to $19.5 million, compared to losses of $11.9 million year-on-year. The company increased is expected credit loss provision by $5.9 million, due to an amendment and extension of loan note repayments, and to reflect the increased uncertainty in the global economy and the impact on oil prices. San Leaon also incurred expenses amid progress on the OML 18 oil and gas block in Nigeria, in which it held an indirect interest. Last month, it announced a $15 million investment into Nigeria's Alternative Crude Oil Evacuation System (ACOES) project owner Energy Link Infrastructure. 'San Leon remains in a strong position,' chairman Mutiu Sunmonu said. 'Our strategy is delivering, and we expect to continue to deliver as we receive further loan note repayments in the coming year. 'OML 18 is undoubtedly a world class asset and we believe that the ACOES will significantly reduce OML 18's losses and downtime going forward.' Story provided by

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