17th Aug 2021 10:22
(Alliance News) - Nostrum Oil & Gas PLC on Tuesday posted a first half revenue decline, despite higher oil prices.
The exploration and production company narrowed its losses, however, as it kept a lid on costs. It also named a permanent chief financial officer.
Shares were 7.4% higher at 11.25 pence each in London on Tuesday morning.
Nostrum, which operates in Kazakhstan, said revenue in the first half of 2021 fell 0.4% year-on-year to USD92.3 million from USD92.6 million. However, revenue in the second quarter was 43% higher at USD46.1 million from USD32.3 million.
Its pretax loss in the first half narrowed to USD34.4 million from USD51.1 million. Sales costs were 23% lower at USD42.9 million from USD63.9 million, while general and administrative expenses and selling and transportation expenses were 29% and 33% lower, respectively.
"I am pleased that despite all the uncertainties and disruptions that Covid-19 and our restructuring process continues to cause, we are showing strong financial and operational resilience," Chief Executive Officer Arfan Khan said.
Nostrum noted the average crude price in the first half rose 53% annually to USD65.20 per barrel, from USD40.00.
The company named Shane Drader as its CFO, effective August 30. Interim CFO Martin Cocker will step down from the post on the same date, but will remain with the company as an independent non-executive director.
Drader has held finance roles with KazMunaiGas Exploration & Production JSC, an oil and gas company in Kazakhstan.
He was also formerly finance director for British American Tobacco PLC in Uzbekistan, Serbia and Croatia, Nostrum noted.
Former Nostrum CFO Tom Richardson resigned back in March 2020. Cocker has named as interim CFO following Richardson's departure.
By Eric Cunha; [email protected]
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