14th Aug 2019 09:22
(Alliance News) - Riverstone Energy Ltd reported a heavy first half loss and a fall in net asset value as the investment company felt the effects of oil price downturns.
In the six months to June 30, Riverstone Energy's net asset value fell by 26% to GBP833.0 million from GBP1.12 billion in December, and by 37% year-on-year from GBP1.33 billion.
In dollar terms, NAV also fell by 26%, to USD1.06 billion from USD1.43 billion in December and by 40% year-on-year from USD1.75 billion.
Net asset value per share fell by 26% in both sterling and dollar terms from December. This sunk to 1,043.00 pence from 1,406.00p, or USD13.24 from USD17.91. The share price as at June 30 was 861.00p.
Shares in Riverstone Energy were flat at 730.00 pence each in London on Tuesday morning. The stock started 2019 at 1,092.00p so is down 33% so far in 2019.
A negative change in the value of investments drove a USD373.1 million overall loss for the company in the period. Riverstone Energy made an interim profit of USD10.7 million in 2018.
The negative value in investments was USD371.3 million compared with a USD12.6 million gain in the first half of last year.
Riverstone Energy said it faced "difficult conditions for energy valuations" during the half and that its exposure to the exploration and production industry meant it was not "immune to the effects of the most prolonged oil price downturn in recent history".
Riverstone Energy invested a total of USD24.0 million during the period, while selling USD133.0 worth of investments.
Chair Richard Hayden said: "Riverstone is well-positioned to create value for shareholders through its flexible investment strategy, which has evolved as oil prices remain lower for longer. Even though Riverstone's NAV and share price performance have been impacted by the instability in the energy markets, the company and investment manager remain keenly focused on driving portfolio company investment performance in order to generate favourable returns to shareholders.
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