Cadogan swings to 2024 loss but eyes growth in power projects

Mon, 28th Apr 2025 11:37

(Alliance News) - Cadogan Energy Solutions PLC on Monday said it swung to a loss in 2024, as the ongoing war in Ukraine continued to weigh heavily on operations, despite higher revenue and a pivot toward electricity generation.

Shares in Cadogan Energy Solutions were up 14% at 4.28 pence in London on Monday morning.

The Ukraine and Italy-focused oil and gas company reported a pretax loss of USD5.5 million for 2024, compared to a pretax profit of USD1.3 million the year before.

Revenue rose 21% to USD9.2 million from USD7.6 million, helped by a 9% increase in oil production and higher average realised prices of USD71.13 per barrel of oil equivalent, up from USD59.32.

Cost of sales fell slightly to USD5.0 million from USD5.4 million, and administrative expenses were stable at USD3.5 million versus USD3.6 million.

However, the company recorded a net foreign exchange loss of USD1.1 million, compared to a gain of USD538,000 in 2023, and booked a USD5.7 million impairment related to the settlement of a long-running dispute over its investment in Italy's Proger Ingegneria Srl.

Chief Executive Officer Fady Khallouf said Cadogan maintained operational stability despite "tremendous challenges" linked to the conflict. Production from its Blazhiv field in western Ukraine continued uninterrupted, with annual output rising to 129,272 barrels.

The company is diversifying into electricity generation, launching new projects with a combined 12.3 megawatts of capacity, expected to become operational in the second half of 2025.

Cadogan also said it is progressing with its gas-to-power project at Blazhiv, which will capture non-commercial gas emissions to generate electricity, now slated to begin operations in July 2025 following regulatory delays.

CEO Khallouf said Cadogan is "well-positioned" to advance its shift toward lower-impact energy activities, supported by a strong cash position of USD14.4 million at the end of 2024.

By Eva Castanedo, Alliance News reporter

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