CAMPAIGNERS have called on the Government to withhold consent from a fracking company after its latest accounts revealed significant losses and highlight a “material uncertainty” regarding its future.

Third Energy, the company behind plans to frack at Kirby Misperton in North Yorkshire, published its 2017 accounts on Friday.

The accounts reveal an increase in operating losses to £3.58m and a leap in net liabilities to £63.96m, representing a £9.3m increase in comparison to figures for 2016.

Figures also show that a capital expenditure of £14m will be required before ‘unconventional resource’ projects – such as fracking - can be developed, £5m of which is forecast within 12 months.

A report published on Companies House also confirmed that the onshore arm of the business is currently up for sale, with the firm currently actively looking for partners or buyers.

Directors believe that onshore developments “of both conventional and unconventional gas licenses” in the North-East would be likely to generate sufficient income to cover current and future costs of development.

However, the report says that the financial conditions represent “a material uncertainty that may cast significant doubt on the ability of the company to continue as a going concern”.

A spokeswoman for the firm said that further capital investment would be required to develop offshore and onshore projects.

She said the Third Energy group was currently in discussions with a number of potential investors, adding: “The KM8 hydraulic fracture project to test the unconventional resource potential will resume when the business financing is complete, final consent has been received from the Secretary of State and the frac spread becomes available on completing its current contractual commitments.”

Environmental campaigners said that the accounts raised “serious concerns” about the company’s ability to operate competently in North Yorkshire.

 

They have called on ministers Greg Clark and Claire Perry to deny fracking consent to the company at its Kirby Misperton shale gas site.

Frack Free Ryedale member Russell Scott said: “For the last three years we have been warning the Government that Third Energy do not have the capability to operate competently.

“Third Energy’s latest set of accounts prove what we already knew – they cannot be considered financially stable and Greg Clark should ensure final fracking consent is denied.”

Simon Bowens, Yorkshire campaigner for Friends of the Earth, added:“It’s no surprise that Third Energy want to sell their onshore fracking business.

"Fracking is a failing fossil fuel industry.

"In light of the IPCC’s recent report where the world’s leading climate scientists laid out the radical action needed to avoid climate chaos, wise investors would be much better off investing in solutions like energy efficiency and renewables.”