LONDON (Alliance News) - Asia-focused oil and gas driller Greka Drilling Ltd on Thursday said its pretax loss widened in 2015, principally due to foreign exchange losses from a weaker Chinese currency.
Greka said its pretax loss for the year to the end of December widened to USD7.5 million, compared to USD5.3 million in 2014, as its foreign exchange losses grew to USD3.6 million from USD800,000 a year earlier.
Revenue rose to USD29.9 million from USD24.4 million, but Greka's gross margin was squeezed to 20% from 26% amid a tough oil and gas market.
Greka said it drilled 62 wells in the year, up from 45 the year before.
Greka said its revenue growth was robust given the challenges facing the oil and gas industry, but said the foreign exchange losses and ongoing investments in its Indian business hit earnings.
Amid a slowdown in drilling opportunities foreseen in 2016, Greka said it has taken steps to cut its fixed costs and anticipates it will benefit when the oil and gas market recovers from its leading position in lateral well drilling.
Greka Drilling shares were down 19% to 3.65 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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