24th Apr 2020 14:58
(Alliance News) - Riverstone Energy Ltd on Thursday said its net asset value practically halved in 2019, as the energy-focused investment firm suffered from a especially difficult market environment.
As at December 31, Riverstone Energy's net asset value per share as at December 31 was GBP7.36, a 48% drop from GBP14.06 the same date the year before. In US dollar terms, NAV per share feel by 46% to USD9.66 from USD17.91.
Riverstone Energy's annual loss widened to USD659.6 million from USD240.1 million in 2018, due to a loss of USD654.2 million on the fair value of investments, compared to USD236.4 million the prior year.
The trust's share price at the end of December in sterling was 414 pence, reflecting a 44% discount to net asset value.
Shares in Riverstone Energy remained flat at 160.00 pence on Friday in London.
Riverstone said its overall weaker performance was due to volatility in commodity price, particularly oil with excess supply, suppressed demand, and geopolitical tensions with the US-China trade spat replaced by ongoing tensions between the US and Iran.
"We are currently facing extraordinarily difficult market conditions due to historic events including the coronavirus pandemic which has created significant headwinds for all economies globally. The board and investment manager have been keenly focused on protecting the portfolio through this period as well as determining other ways to create shareholder value and narrow the discount to NAV," said Chair Richard Hayden.
By Dayo Laniyan; [email protected]
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