In its half year results which also announced former Tanzania Investment Centre Executive Director, Juliet Kairuki as non-executive board member, the London Stock Exchange listed firm said its record financial results achievement was due to growing demand of gas and increasingly stronger fundamentals.
Commenting on the impressive performance, Wentworth Resources’ CEO, Katherine Roe said the 1H results have delivered a record financial and operational performance which underpins the decision to increase the interim dividend.
“Following a challenging period of global economic uncertainty, to have delivered this record performance demonstrates once again the strength of our fundamentals. Our commitment to maintaining these is unwavering,” Roe said.
The company said the interim dividend declared is an increase of 10 percent compared to U$1.2 million which was declared during the same period last year. The latest interim dividend brings the total dividend distribution declared in the last 12 months to U$5.12 million.
During the period under review, Wentworth said revenue grew by 40 percent to U$11.7 million compared to U$8.3 million made last year thanks to record levels of production at Mnazi Bay gas wells.
“Whilst we have enjoyed a robust first half, we remain focused on meeting our full year potential and meeting the growing demand in Tanzania for reliable low-cost power. The strength of our team and partnerships, the reliable performance of the Mnazi Bay asset and the improving outlook in Tanzania ensures we are in a positive position for the future," she added.
The results also indicate that the good performance was also boosted by Tanzania Petroleum Development Corporation’s continued timely payment for gas sales but also a good payment plan to settle outstanding arrears by Tanzania Electric Supply Company established with over half the outstanding balance received in August.
The report further noted that health and safety remained high on the company’s agenda hence involved partners and local communities in combating the coronavirus outbreak. “On 2nd August 2021, the company celebrated a five year zero lost time incident rate milestone,” the half year report noted.
“Robust precautionary measures remain in place related to COVID-19 to ensure the ongoing safety of our staff; to date, there has been no disruption to operations at Mnazi Bay due to COVID-19,” the Wentworth Resources report stated adding that as a result of sustained gas production, there was a strong financial position with U$21.0 million cash in hand as at 2nd September 2021 compared to U$16.7 million last year with zero debt.
During the period under review, Bob McBean also retired as Chairman of the Board but continues to support the company as President of Wentworth Tanzania while Tim Bushell was appointed non-executive Chairman as part of planned board succession.