19th Jun 2015 08:05
LONDON (Alliance News) - Shares in Urals Energy PCL Friday morning fell 28% as it posted a widened pretax loss for 2014, hit by volatility in the crude oil price and the devaluation of the Russian rouble against the dollar.
Urals is an independent exploration and production company with operations in Russia.
Urals posted a pretax loss of USD16.1 million for 2014, widened from a loss of USD400,000 a year before, as revenue fell to USD58.2 million from USD64.8 million. The decline in the price of crude oil and the devaluation of the rouble led to a decrease in average net back prices for both crude oil export sales and petroleum products domestic sales, Urals said.
Total production at its Articneft project was 240,865 barrels, down from 250,426 barrels a year before, and total production at Petrosakh fell to 421,350 barrels from 470,415 barrels in 2013. Difficult geological conditions hit production at Petrosakh, the company said.
A work over programme has led to an increase in current daily production at Articneft to 720 barrels per day, Urals said, which is 9% higher than the average barrels of oil per day during 2014. Current daily production at Petrosakh is 1,095 barrels per day, down from an average 1,154 barrels per day during 2014.
"The company has weathered extremely testing trading and corporate factors during 2013 and 2014. The board is confident that having done so, we can take advantage of our relative financial strength and the support of our shareholders to develop our own reserves and conclude acquisitions as the general environment improves," the company said in a statement.
Shares in Urals are trading down 28% at 3.31 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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