LONDON (Alliance News) - Cadogan Petroleum PLC Thursday reported a swing to a pretax profit for the first half of 2016, boosted by the depreciation of sterling.
Cadogan is an oil and gas exploration, development and production company with onshore gas, condensate and oil assets in Ukraine.
Cadogan reported a pretax profit of USD2.1 million for the half year to the end of June, compared to a pretax loss of USD4.5 million the year before, despite revenue falling to USD12.3 million from USD40.6 million, boosted by a USD5.2 million foreign exchange gain.
The company noted that, without this boost from the devaluation of sterling, it would have incurred a loss of USD3.3 million for the period.
Cadogan said that lower volumes of traded gas and lower margins hit its revenue, meaning gas trading had not contributed to profit in the half year, although its services business did much better, helping to offset this hit.
It said that its active review of opportunities to expand and diversify its portfolio has continued, and although results so far have "not met expectations" it remains confident that these efforts will "deliver results and the portfolio will be reloaded and diversified".
"Cadogan remains well positioned to pursue and exploit the opportunities which will materialize in the E&P domain, outside of Ukraine and in Ukraine once the country re-bounds from the current situation," Cadogan said in a statement.
Shares in Cadogan were untraded Thursday, having last closed at 7.51 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Cadogan (CAD)