(Alliance News) - JKX Oil & Gas PLC on Tuesday said its first half revenue fell over 20%, despite posting a rise in output.
In the six months ended June 30, revenue fell 23% annually to USD35.1 million from USD45.3 million.
The Ukraine-focused energy firm's pretax profit fell by two-thirds to USD2.0 million from USD6.0 million.
The earnings fall was despite average daily production rising to 10,445 barrels of oil equivalent per day, up 3.0% annually.
"The decline in profit is a result of the significant reduction in oil and gas prices across our operations and in line with international trends," Chair Charles Valceschini said.
The company added: "In response to the fall in oil and gas prices the group implemented cost-cutting measures with effect from March 2020 and has adopted a revised 2020 Budget. The measures taken target operational and administrative expenses in the subsidiaries and the London office and most discretionary capital expenditure has been postponed until 2021, by which time it is hoped that prices will have strengthened."
JKX shares fell 9.7% to 19.50 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.