MELROSE Resources, the Scottish oil and gas operator with interests in Egypt, Bulgaria, Romania, America, France and Turkey, said yesterday it was not immune to the global downturn.
Executive chairman Robert Adair said the oil and gas sector was battling to deal with low oil prices, a significant tightening in the credit markets and a lack of stability in equity markets.
He added: “The company’s robust financial position and operating strategy mean that it is well placed to weather the storm and emerge in a very strong position.
“In 2009, we intend to adopt a prudent approach to capital management.
“We may also defer the execution of some projects where we perceive that the cost of both services and equipment may fall in the short term. As such, we expect to be reducing our 2009 capital expenditure to around £120million, a 20% decrease relative to 2008.”
Edinburgh-based Melrose reported pre-tax profits yesterday of £102.34million for 2008 compared with losses of £39.28million the year before. Revenue for the year was £267.67million, up from £113million in 2007.