LONDON (Alliance News) - Chagala Group Ltd on Wednesday said its operating profit fell in 2015 on lower revenue, due to challenging markets.
The company, which provides temporary accommodation and facilities services to oil and gas operators in Kazakhstan, said operating profit in the year to the end of December declined to USD3.8 million from USD4.5 million a year earlier.
Revenue slipped to USD23.5 million from USD28.2 million, hit by the challenging conditions in oil and gas markets. The collapse in the oil price has caused oil and gas project operators to cut costs wherever possible to keep projects economic, hitting companies providing services to the oil and gas industry.
"Despite the many challenges in global economy and major oil and gas projects implementation, the group has seen improvements in operational and financial performance indicators," said Svetlana Mendesh, Chagala's chief financial officer.
"Much work needs to be done; however the management is confident that today we more than ever believe in the promise and success of Chagala Group," Mendesh added.
Chagala shares were untraded Wednesday at 1.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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