30th Sep 2015 09:49
LONDON (Alliance News) - Petroceltic International PLC on Wednesday said its pretax loss narrowed in the first half due to lower costs, though revenue plunged because of the lower oil price and weaker production from its projects.
The company said its pretax loss for the half to the end of June was USD23.3 million, compared to a USD48.5 million loss a year earlier when it booked big write-offs on exploration costs, along with higher depletion and decommissioning expenses.
Revenue for the group, however, fell to USD38.0 million from USD96.3 million a year earlier, due to lower production from its projects in Egypt and Bulgaria and due to the sharp decline in the oil price year-on-year, which has caused the tough conditions currently plaguing global oil and gas markets.
The group said it has cut costs across the business to mitigate the market challenges, cutting 40% of its head office and corporate personnel in order to focus its attention non its core development and producing assets.
The company spent the half in a constant battle with activist shareholder Worldview Capital Management, which owns 29% of the company, and last week won a battle in an Irish court with Worldview to block a general meeting the investor had requisitioned.
"The company has remained focused on delivery from its core assets, despite a challenging sector and market environment," said Brian O'Cathain, Petroceltic's chief executive.
Shares in Petroceltic were down 5.1% to 61.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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