LONDON (Alliance News) - Ruspetro PLC Friday said its pretax loss widened significantly in 2013 as costs offset improved production and revenues during the period.
The oil and gas development and production company with operations in Russia said its pretax loss widened to USD74.8 million from USD28.1 million in 2012, on higher finance costs and changes in foreign exchange rates.
The company said its finance costs increased to USD33.0 million from USD29.8 million, and it booked a foreign exchange loss of USD25.6 million compared to a gain of USD23.8 million, as an increase in the USD to RUB exchange rate hit the company.
However RusPetro narrowed its operating loss to USD10.6 million from USD18.9 million, as it increased revenues 4.7% to USD79.8 million from USD76.2 million.
Average production increased 3.4% to 4,797 barrels of oil per day from 4,639 barrels the previous year, the company said, due to successful drilling activity and the implementation of water-flooding to reduce well decline rates.
RusPetro also said its well-head revenue per barrel has been enhanced significantly by the introduction of Mineral Extraction Tax relief for hard-to-recover reserves in Russia during 2013.
The company said it reduced its cost of sales 14% to USD63.2 million from USD73.8 million, and its selling and administrative expenses fell 38% to USD25.1 million from USD40.5 million.
RusPetro also noted that its proved resources fell 4% during the period to 225 million barrels of oil equivalent, but its probable resources increased 4% to 1,662 million barrels of oil equivalent, and its proved developed resources increased 81% to 29 million barrels of oil equivalent.
The company said development in 2014 is aimed at maximising cash generation from operations while increasing capital efficiency. It said it has heavily reduced production its Palyanovo licence and will focus solely on its crude production in 2014 in the Pottymsko-Inginksy licence area.
Last Friday, RusPetro said said it has signed a further crude oil prepayment facility with Glencore Energy UK Ltd, a subsidiary of Glencore Xstrata PLC, for USD30 million.
RusPetro shares were down 7.7% to 18.00 pence in early trading Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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