Shares of Hurricane Energy have surged Thursday after the company released an interim report for the six months ended June 30.
However, there is still uncertainty regarding the company's bond repayments.
The oil and gas firm reported a profit of $42.8 million for H1, a big turnaround from the $307.8 million loss during the same period last year.
Revenue also rose, climbing to $124.5 million compared to $81.9 million in H1 2020.
When talking about its debt, the company stated that it continues to evaluate all options to further reduce it and improve the viability of its balance sheet.
However, Hurricane said with stronger oil prices, the company's current production forecasts, and the impact of its bond buyback and internal cost-cutting exercises, it has reduced the anticipated funding gap for the bond repayments.
Antony Maris, CEO of Hurricane, commented: “The first six months of 2021 have proved very challenging. The focus has been on exploring ways to provide a stable financial platform for the company, whilst in parallel delivering production as safely and efficiently as possible from Lancaster. Recent stronger oil prices combined with the impact of the bond buyback, internal cost cutting, and other cost reduction measures, has brought the possibility of bridging the funding gap for the repayment of the bonds within reach. However, the challenge of funding investment in our assets remains.
“Going forward our near-term priority remains the repayment of our convertible bonds, and as such we move into the second half of the year with an overarching focus on capital discipline and operational performance.”
Hurricane Energy Shares are currently trading at 4.65p, up 12.86% from Wednesday's close.
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.