30th Oct 2019 09:37
(Alliance News) - Riverstone Energy Ltd on Wednesday said its net asset value declined in the third quarter of 2019 and it is taking measures to increase cash flow and prepare for more realisations.
As at September 30, the global energy industry investor's NAV stood at USD782 million, having been USD1.78 billion the year before. NAV per share was halved to USD9.79 versus USD21.03.
For the three months to September end, Riverstone Energy made a USD275.8 million loss versus a USD33.3 million profit in the same quarter of 2018. Basic loss per share was 345.21 US cents, swinging from a profit of 39.41 cents per share year-on-year.
The firm's September 30 market capitalisation dropped considerably to USD582 million from USD1.41 billion and the share price plunged to USD7.29 from USD16.65. Riverstone Energy's GBP conversion figures for its share price showed a fall to 595 pence from 1,278p.
Shares in Riverstone Energy were down 0.6% at 475.00p on Wednesday morning.
During the period, Riverstone Energy invested GBP23 million in Aleph Midstream SA through a partnership, part of a USD100 million commitment to the midstream company focused on Vaca Muerta shale play in Argentina.
Chair Richard Hayden said: "During the quarter, REL closed the Aleph Midstream transaction and made its initial investment in the company. We are actively focussed on further diversifying the portfolio with exposure across the midstream, services, and power sectors, in light of the challenging environment for [exploration & production] equity investments. Capital needs for energy companies continue to grow, while financing sources are limited in the current market."
Realisations in the period included GBP23 million from Canadian Non-Operated Resources LP and USD3 million from Carrier Energy Partners II LLC, as well as USD3 million from ILX Holdings III LLC.
Gross committed capital on September 30 was USD1.50 billion, while net committed capital is USD1.16 billion - 97% of available net capital. Net capital invested on that date was USD979 million or 82% of available net capital.
The company is in talks with its investment manager and is seeking to alter the terms of its investment management agreement.
"As we cross the fifth anniversary of the start of the current commodity price downturn, market conditions for E&P investments continue to face severe headwinds. We are actively working to execute both defensive and offensive measures across the portfolio in order to increase cash flows, maintain ample liquidity and position for further realisations," said David Leuschen and Pierre Lapeyre Junior, Riverstone co-founders.
By Anna Farley; [email protected]
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