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Summary
- The upstream oil and gas investment company has handheld various initiatives during the pandemic era in order to ease the potential risks to its operations.
- The shares of Reabold Resources have nearly tripled the investors’ wealth in the last 15 months.
- It managed to raise as much as £7.5 mn in gross proceeds through an oversubscribed placement of more than 890 mln new ordinary shares in 2020.
London-headquartered upstream oil and gas investment company Reabold Resources Plc (LON: RBD) has been looking forward to promising results from its assets in the current financial year, effectively reaching the break-even point earlier than what was projected before.
The company, with focused investments in oil and gas projects across the United Kingdom, Europe and the United States, took various initiatives during the pandemic period in order to manage the potential risks to its operations.
Wealth multiplier
The apparent trajectory of growth and recovery from the so-called Covid bottoms has been visible through the share price performance even amid the pandemic. Interestingly, the shares of Reabold Resources have nearly tripled investors’ wealth in the last 15 months, effectively emerging as one of the most notable gainers among the 700+ components on the FTSE AIM All-Share index.
Such performance has been showcased amid the uncertainty among businesses since the Covid-19 pandemic outbreak. Even the corporations that managed to stay afloat were beaten down by the sluggish performance of their close associates and immediate partners due to moderately high interdependence.
Great returns in 15 months
According to historical data available with the London Stock Exchange, the shares of Reabold Resources have garnered a return of a little more than 180 per cent in the span of just 15 months. The stock has advanced as much as 182% to GBX 0.62 (16 June 2021) from a share price level of GBX 0.22 apiece as on 19 March 2020, when the pandemic-triggered crash engulfed the global financial markets.
In April this year, the stock registered a fresh 52-week high of GBX 0.87 per share. With a return of 182%, the stock of Reabold Resources has vastly outnumbered the return of the benchmark FTSE AIM All-Share index. In the corresponding period, the index has gained 114% to 1,244.49 from a mark of 581.10.
Robust operating model
At a time when commercial activity came to a standstill across the world, there were very few organisations that remained resilient with a long-term vision, and Reabold Resources has been one of those. The resilience of the investments gets most of the credit, alongside the innovative and forward-looking approaches of the management.
Resilient fundraising
The asset quality and the delivery of the strategy have been the primary reasons why investors have always believed in the company. This is quite evident from the fact that Reabold Resources managed to raise as much as £7.5 million in gross proceeds through an oversubscribed placement of more than 890 million new ordinary shares, Reabold confirmed in a regulatory filing on 28 January. This happened when the UK went into the third national lockdown, sending fresh shockwaves to many businesses.
Also Read: Reabold Resources Reports Solid Progress in Investment Projects Despite Pandemic Challenges
Restricting losses in the Covid era
Notably, Reabold Resources has managed to reduce its losses by approximately 37% in the 12 months ended 31 December 2020 to £2.71 million as compared to a full-year loss of £4.27 million in 2019. The financial position of the company is strong, following the recent funding it received. The funding will enable a smoother transition of key projects in 2021, effectively paving the way for transformative value creation in the year ahead.
As far as the impact of Covid-19 is concerned on its business and ongoing projects, the company has been working proactively to eliminate all the potential chances of disruption in commercial operations.
The ongoing economic recovery period is likely to have a substantial impact on its earnings in the upcoming quarters following the successful rollout of Covid-19 vaccines, highly accommodative monetary policy, and strong fiscal stimulus. Reabold Resource remains optimistic with regard to the implementation of programmes slated for the remainder of 2021 as comprehensive economic recovery will certainly boost oil and gas prices.
