28th Oct 2014 08:34
LONDON (Alliance News) - Urals Energy PCL on Tuesday said the planned annual tanker shipment from Arcticneft on Kolguyev Island was completed successfully.
Urals said the tanker departed from the island last week, though the company warned the fall in Brent prices during October is resulting in lower netback for export sales from Russia. It said that while its marketing and transportation costs were in line with last year, its export netback has been impacted by the export duty being set by reference to oil prices in September.
Owing to these factors, the company said there has been a 30% decrease in the netback received on its export sales.
Netback is calculated by taking all of the revenues from oil, less all costs associated with getting that oil to market.
Urals Energy said it does expected a seasonal rise in product prices in the Sakhalin market in the rest of the year, which it expects to secure its cash flow at a sufficient point to maintain operating and investment activity.
In addition, under a deal signed with Petraco in June, the company said the successful delivery of the tanker is linked to the USD9.8 million received from the company. It expects to settle this debt by the end of the year, leaving Urals debt free.
Urals shares were up around 20% in opening trade Tuesday before reversing. They are currently down 2.6% at 4.02 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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