Friday 25 May 2018

Petroneft eyes acquisitions as losses widen

New ground: PetroNeft's exploration works in Russia
New ground: PetroNeft's exploration works in Russia
Michael Cogley

Michael Cogley

Irish oil and gas firm Petroneft is looking at acquisitions or business tie-ups to help it take advantage of a weak marketplace.

The exploration company, which largely operates around Russia, grew its production by 39pc in the first half of the year as it dealt with widening losses.

Revenue at the company increased by $142,000 to $1.36m while its cost of sales crept up by $29,000 to $1.24m.

Despite the increased revenue Petroneft posted a loss for the period of $2.3m, up by nearly $900,000 on the same period last year.

The main contributors to the increased losses include the company's share of losses in two of its joint ventures, namely WorldAce Investments and Russian BD Holdings.

Petroneft chairman David Golder said the year has been very busy for the firm.

"Given that market conditions remain challenging with little sign of improvement in oil prices in the near term, our focus continues to be on growing production, managing costs and positioning the company for any improvement in market conditions, while we are also investigating opportunities to benefit from current conditions by growing the company through acquisitions or business combinations focussed on producing assets in Russia," he said.

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