Gulf Keystone posts $248m loss after pay issues with Kurdistan

 
Caitlin Morrison
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SHARES in Kurdistan-focused oil firm Gulf Keystone Petroleum (GKP) dropped by 2.56 per cent yesterday, after the company reported a loss of $248m (£169m) for 2014.

This was a deepening of the $32m loss posted in 2013. Revenues were up to $38.6m from $6.7m, and the company stated that it is owed ad­ditional revenue “in the region of $100m”, but which has not yet been recognised for crude oil export sales. GKP said it was planning to establish a regular payment cycle for past and future export sales.

Analysts attributed the loss to the lack of regular payments from the Kurdistan government as well the fall in global oil prices.

Lewis Sturdy at London Capital Group, said: “Once upon a time, it may have been a prize target, but the geopolitical situation means it is probably lower on the takeover list than some of the other battered oil small caps that come into focus following the oil price slump and the Shell-BG mega deal.”