Profits at Hurricane Energy surged more than 10-fold last year despite a fall in oil production as the company benefitted from elevated wholesale prices.

Hurricane, which is awaiting final approval for a takeover offer from Prax Exploration & Production, made a pre-tax profit of $113.6 million (£92m) in 2022, up from $10.8m the previous year. Revenues rose to $310.8m from $240.5m even though extraction from its sole asset – the Lancaster field located approximately 60 miles to the west of Shetland – fell from 3,748 thousand barrels (Mbbl) in 2021 to 3,089 Mbbl.

"2022 has been both very challenging and a highly successful year for Hurricane, whilst also an extraordinarily volatile period for our sector," chief executive Antony Maris said.

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"During the year, the importance of domestic energy security was exacerbated by the terrible events in Ukraine and by the subsequent concerns over energy supplies across Europe resulting in surging commodity prices. 

"The resulting high oil price early in the year, combined with outstanding operational performance at the company's Lancaster field, significantly strengthened Hurricane's finances."

Hurricane put itself up for sale in November of last year after rejecting an unsolicited takeover offer from an unnamed suitor. That led to the announcement in March of an agreement with London-headquartered Prax, which has interests in the UK, Houston and Singapore.

The transaction is being completed via a scheme of arrangement with a court sanctioned hearing set for June 7, and values Hurricane at up to £250m. It is expected that June 7 will be the last day of dealing for Hurricane shares in London.

"Should the scheme be sanctioned by the court, I believe Hurricane has an exciting future as part of the wider Prax organisation," chairman Philip Wolfe said.

Shares in Hurricane closed yesterday's trading nearly2% higher at 7.9p. At its top end, the offer from Prax values each share in Hurricane at 12.5p.