10th Sep 2015 09:02
LONDON (Alliance News) - Global Energy Development PLC Thursday posted a widened pretax loss for the first half of 2015 as a result of higher costs, but said it had performed well despite the continued volatility and instability in the energy sector.
Global Energy is a Latin America-focused petroleum exploitation development and production company with operations in Colombia.
For the half year to end-June the company posted a pretax loss of USD2.8 million, widened from a pretax loss of USD2.5 million a year before, as a result of higher administrative costs. The increase in costs was partly due to USD173,000 in severance costs for redundancies.
Revenue fell to USD217,000 from USD348,000 a year before, as a result of lower average realised sales prices of USD37.10 per barrel compared to USD88.39 per barrel in the previous year. During the period the company's sole producing well averaged around 35 gross barrels of oil per day, yielding lifted volumes of 5,862 barrels of oil for the half year, compared to 3,940 barrels in the previous year.
Global Energy highlighted continued challenges in the market due to low oil prices, geopolitical turmoil, rising debt and a general lack of access to financing. It has taken steps to preserve its cash, reducing personnel costs by around 40% following the sale of its wholly-owned subsidiary Colombia Exploration and Development Co last December, and by a further 40% during the first half of 2015.
"Despite the continued volatility and instability in the energy sector, Global has performed well for the period. With the group's strong cash balance, streamlined, debt-free and low overhead structure, the company, with the assistance of its advisors, is equipped to find and unlock value for its shareholders through investment, strategic or acquisition opportunities with other energy sector companies," said Managing Director Steve Voss in a statement.
Shares in Global Energy were up 5.1% at 31.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
GED.L