30th Apr 2015 18:07
LONDON (Alliance News) - Cadogan Petroleum PLC Thursday reported a widened pretax loss in 2014 due to an impairment of its oil and gas assets and its investment in the Pokrovskoe joint venture.
The company, which operates in Ukraine, reported a pretax loss of USD59.1 million in 2014, compared with a loss of USD14.4 million in 2013, which it said reflected a USD54.7 million impairment of its assets in the Pokrovskoe joint venture, and a USD5.1 million impairment of oil and gas assets relating to the Pirkovskoe and Debeslavetskoe fields.
However, revenue for the year increased to USD32.6 million from USD3.8 million, largely due to the success of trading operations which represent USD29.4 million of total revenue. This offset a slight decline in revenue from the production and service businesses.
In 2014, the group started trading energy products such as natural gas and diesel. Trading operations include the importing of gas from European countries, local purchasing and sales operations with physical delivery of natural gas and diesel, it said.
"The board continues to develop further relationships and opportunities overseas, our established presence in Ukraine, our skilled staff both in Kiev and also in the east and west of the country, and our adherence to the highest standards of corporate governance gives us the opportunity to act as a beacon for the western industry and industry standards. We believe that the company is uniquely placed to create value from any emerging opportunity," Chairman Zev Furst said in a statement.
Shares in Cadogan closed up 1.1% at 8.85 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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