(Alliance News) - Caspian Sunrise PLC on Friday said it has suspended future dividend payments and expects to see a loss in revenue as the Russia-Ukraine conflict looms.
Caspian Sunrise shares fell by 26% at 2.97 pence each in London on Friday morning.
Ahead of its annual general meeting on Friday, the Kazakhstan-focused oil and gas exploration and production company said dividend payments will be suspended either until the end of the year, until it sees a significant increase in production or when it receives USD22.5 million in proceeds from its conditional sale of Caspian Explorer.
The company sold 50% of Caspian Explorer to Stepping Stone Investments Ltd earlier this month.
Caspian Sunrise also confirmed it produced a record 792,284 barrels of oil in 2022, reflecting a 48% increase from the previous year.
Nevertheless, Caspian Sunrise noted discounts for oil using the Russian pipeline network have continued, meaning the company estimates a loss of revenue at an annualised rate of approximately USD18 million.
Additionally, Caspian Sunrise said its inability to sell on international markets as a result of the Russian invasion of Ukraine has led to missed profits for the financial year.
As a result of operational interruptions, the company said it is yet to increase daily production beyond the current 2,000bopd.
By Sabrina Penty, Alliance News reporter
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Caspian Sunrise (CASP)