British oil and gas developer IGas (LON:IGAS) swung into profit in 2017, supported by a hefty tax credit and an increase in oil prices.

The group reported a £15.5 million net profit for the year to end of December, compared with a loss of £32.9 million the previous year, with revenue jumping to £35.8 million from £30.5 million the year before.

The group’s performance was aided by a tax credit of £19.1 million as well as an increase in oil prices across the year. Adjusted EBITDA was £9.2m down from £10.2m.

Net production averaged 2,335 boepd for the year, but operating costs fell to $28.2 per boe from $28.8 per boe. IGas are expecting net production of between 2,300 – 2,400 boepd in 2018 and operating expenditure of $32.5 per boe.

Stephen Bowler, IGas’ CEO, commented: “We have sanctioned a number of projects, including Albury and Stockbridge, and would expect to see the benefits of these projects during the latter part of 2018.

“In the North West we are progressing our application at Ince Marshes and advancing further applications. It is our intention to appeal the decision of Cheshire West and Chester Council’s Planning Committee of 25 January 2018 to refuse planning consent for our application to test the Pentre Chert formation at Ellesmere Port.”

Shares in IGas are currently trading down 1.30 percent at 76.00 (0849GMT).