(Alliance News) - Cadogan Petroleum PLC on Monday said it swung to a loss in 2019, on revenue slumping by more than half, and costs rising to boot.
Revenue in 2019 sunk by 60% to USD5.9 million from USD14.7 million. Cadogan posted a USD2.1 million pretax loss, swinging from a USD1.0 million profit in 2018.
Administrative expenses rose 19% to USD5.7 million and on top of this, gains from an impairment reversal tumbled by 80% to USD345,000.
Cadogan did register a production rise, up 15% to 104,816 barrels of oil equivalent, but the average realised price fell 8.0% to USD47.2 per barrel equivalent from USD51.3.
Cadogan has assets in Ukraine and also owns a 90% stake in an Italian exploration firm.
"For Cadogan, 2019 has been a mixed year. The successful drilling of Blazhiv-10 has increased the oil production whilst the trading activities have not delivered the expected results," the company said.
"Despite the changes that have occurred, Ukraine is still in the middle of its journey towards a developed and stable economy. The efforts to reform the country made limited progress and the key issues of reforms and transparency continued to be the main concerns of investors and international financial institutions."
Focus now turns to Covid-19, which has caused turmoil in both oil and equity markets.
"These are uncertain times, but we are reassured that Cadogan has a competent and strong management to weather this storm," Cadogan said.
The stock was untraded in London on Monday, last quoted at 3.09 pence per share.
By Eric Cunha; ericcunha@alliancenews.com
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Cadogan (CAD)