23rd Jun 2015 07:33
LONDON (Alliance News) - PetroNeft Resources PLC Tuesday said it expects production to grow in 2015 as it drills license 61 in Russia as the company said its pretax loss for the year narrowed despite revenue almost halving.
The gas company operating in Russia reported a USD8.4 million pretax loss in 2014, narrowing from a USD11.5 million loss in 2013 despite revenue almost halving to USD19.2 million from USD38.7 million.
The loss narrowed after administrative expenses fell to USD3.7 million from USD6.8 million, exchange losses on intra-group loans dropped to USD2.4 million from USD6.2 million and finance costs decreased to USD1.6 million from USD3.4 million.
That was partially offset by a USD5.6 million loss on the disposal of a subsidiary in 2014, something it did not book in 2013.
Production for the year totalled 728,826 barrels, which fell from 870,965 barrels whilst sales followed by falling to 704,189 barrels from 879,826 barrels. That was also hit by average prices falling to USD41.59 per barrel compared to USD43.97 per barrel in 2013.
"2014 was a transformative year for the company during which the greatest achievement was the licence 61 farmout to Oil India Ltd announced in April 2014 and completed in July 2014. The farmout gave us a strong industry partner seeking to build a strategic position in Russia as well as the financial resources to develop the significant potential of licence 61," said Chief Executive Dennis Francis.
"Drilling has recommenced at licence 61 and significant production growth is expected in 2015," he added.
PetroNeft shares were down 0.2% to 4.49 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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