13th Feb 2015 08:07
LONDON (Alliance News) - Riverstone Energy Ltd Friday said its net asset value grew during 2014 despite falling oil prices hitting the energy sector.
Riverstone said the low world price of crude will allow the company to continue to invest on favourable terms.
The investment company with a focus on the energy sector said its net asset value at December 31, was USD1.24 billion, up from USD1.13 billion at the same point in 2013. That represents a net asset value per share of USD16.31 from USD16.04 per share a year earlier.
Riverstone said its net asset value benefited from a 40% increase in the value of its investment in the Fieldwood asset in the Gulf of Mexico and an 50% uplift in an exploration and production investment in western Canada.
Total comprehensive profit for the year ended December 31 significantly increased to USD20.6 million from USD600,000 in 2013, representing a basic profit per share figure of 28.60 cents from 0.81 cents.
"Riverstone Energy has continued to deliver on its investment objectives through commitments to eight additional companies in 2014," said Chairman Robert Wilson.
Wilson said the company is "well positioned to take advantage of market volatility" as it has a strong capital position and a "diversified footprint" after its first full calendar year of trading.
Riverstone has committed USD724 million to ten investments at the end of December, or 59% of the total capital raised from its initial public offering. Of the USD724 million, USD376 million has already been invested, or 31% of the total capital raised.
"Riverstone Energy's rapid progress to date means that the company is well on track to achieve our stated objectives to be fully committed within 24 to 36 months of our initial public offering and to deliver strong returns to its shareholders," said Wilson.
"Despite oil prices falling by 43% during the calendar year, Riverstone's investments are starting to yield tangible results through drilling successes and production increases," said Wilson.
"We are confident that the long-term outlook for the sector remains favourable. We continue to source a range of attractive investment opportunities in the current environment," said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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