Regal Petroleum today said “geopolitical events”, including disruption to the gas sales market, had hit its financial results.
Turnover for the year was $23.4million – down on 2014’s $34.6million.
The firm made a $1millon loss, compared to the previous year’s $5.8million profit. Cash generated from operations tallied $8.8million, compared to $19.6million in 2014.
“Due to the geopolitical situation in Ukraine, the economic impact of the devaluation of the Ukrainian Hryvnia, the decline in worldwide hydrocarbon prices and the uncertainty in the gas sales price, a limited development programme is planned for 2016”, a company statement read.
Chairman Keith Henry added: “The geopolitical upheaval, the volatility in the gas price and the Ukrainian Hryvnia, and the fiscal and economic uncertainty in Ukraine since the end of 2013, have meant that the Group considered it necessary to reduce its planned capital investment programme. The revised programme during the year was limited to installation of the Lutsenky ‘wet’ gas treatment infrastructure referred to above, undertaking workover operations on the SV-6 well, improvements to the Group’s gas processing facilities and pipeline network, and performing remedial work on existing wells.”