LONDON (Alliance News) - Cadogan Petroleum PLC Tuesday said it performed well in 2015, reporting a narrowed pretax loss, despite a challenging political environment in Ukraine which has further devalued the local currency in addition to falling oil and gas prices.
Cadogan reported a pretax loss from continuing operations of USD22.2 million, narrowed from a pretax loss of USD59.1 million in 2014, on revenue of USD75.4 million, up from USD32.6 million. Despite booking higher impairment charges on its of oil and gas assets, the company also recognised a significantly lower share of losses from joint ventures.
Cadogan said it had "weathered the storm" of a challenging 2015 for the oil and gas industry, and for Ukraine, through its continued cost reductions.
The company said that full extent of repercussions from the 2014 Ukrainian revolution have "yet to be felt", and the country has "still not entered a period of real stability". This has led to a further devaluation of the local currency, and has also caused delays in renewal and approval processes for licences in the country, along with the extension of a "temporary" punitive 70% subsoil use tax regime, all of which created additional challenges for the market.
Despite managing a solid performance in 2015, Cadogan stressed the "compelling need" to diversify its portfolio outside of Ukraine, and said it it is pursuing opportunities to diversify while building a more robust production base.
"With its solid balance sheet, low cost operations, proven resilience to a low price environment and the international experience of its leadership team, Cadogan is poised to leverage its strengths and take advantage of the very real opportunities that lie ahead," said Non-Executive Chairman Zev Furst in a statement.
Shares in Cadogan were untraded Tuesday, having last traded at 9.60 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Cadogan (CAD)