ASX-LISTED oil and gas contractor GR Engineering, which provided services to Northern Oil & Gas Australia at the Laminaria and Corallina oilfields in the Timor Sea, has posted a A$9.7 million loss before tax in its full year results today.

GR Engineering provided services to the now liquidated NOGA for its Northern Endeavour floating production storage and offloading vessel which produced oil from the two fields.

However, an impairment to its subsidiary Upstream Production Solutions saw writedowns of about $17.6 million when NOGA went bust and ultimately fell into receivership and then liquidation. 

"The financial year 2020 results were negatively impacted by the impairment of an outstanding receivable owed by Timor Sea Oil & Gas Pty Ltd," GR managing director Geoff Jones said. 

Timor Sea Oil & Gas was one of four subsidiaries operated by NOGA. 

Despite the negative impact of the NOGA liquidation the company still posted revenue of $222.4 million with underlying EBITDA of $11.3 million. 

At June 30 the company had $37.5 million cash in the bank. This was up significantly from the $20.7 million it had in the bank at December 31 2019. 

Jones called the company's position "well capitalised" and noted its 2021 pipeline of new work was worth around $170 million. 

Source: Energy News Bulletin

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