Petroneft narrows losses as revenue rises

28th Jun 2013 09:54

Oil and gas company PetroNeft narrowed its annual losses as revenue and production rose.The Russia-focused group reported a pre-tax loss of $2.8m for 2012, down from the previous year's loss of $16.4m.Revenue climbed to $34.6m from $29m as average production grew to 2,204 barrels of oil per day (bopd) from 2,049 bopd."Overall, 2012 was a challenging year," said Dennis Francis, Chief Executive Officer."While we are pleased we brought a second oil field into production, regrettably this success was overshadowed by the production results from Pad 2 at Lineynoye and the consequent financial constraints that have slowed the group's development."Looking ahead, Francis expects its Arbuzovskoye, Sibkrayevskoye and Tungolskoye oil fields to generate cash in coming years.In April 2013, one oil production well at Arbuzovskoye was converted to a water injection well. However, it will take several months to see the full benefit of the injection well.Shares rose 3.51% to 2.95p at 10:40 on Friday.RD