Nostrum Oil & Gas has reported its a 54 per cent dip in earnings for 2015 following a “challenging” year.
The company has reported earnings before interest, taxation, depreciation and amortisation (Ebitda) of $229m (£159m) for the year to 31 December 2015. This is down 54 per cent from $495m in 2014.
The company reported revenue of $449m, down from $782m in 2014.
Nostrum reported a net loss for 2015 of $95m. It said this was primarily as a result of a $101m deferred income tax charge relating to the devaluation of the Kazakh tenge on the US dollar.
Why it's interesting
The fall in earnings came despite the firm reducing the operating costs per barrel from $5 to $4.30 in 2015.
And there are plans for further cost reductions this year.
Nostrum's chairman Frank Monstrey said the company must “remain vigilant on cost cutting” to to ensure future returns for shareholders “in the new oil price environment”.
What the company said
2015 was a challenging year for Nostrum as we adapted to the falling oil price. We reacted quickly in cutting costs and took steps to protect the financial stability of the company whilst not deviating from our strategy to double our processing capacity and reach a production level in excess of 100,000 boepd in the near future...
Whilst the industry is still adapting to the low oil prices I believe at Nostrum we have made quick decisive decisions that will protect our stakeholders under all possible oil price scenarios. With these solid foundations I look forward to completing our near-term initiatives and seeing Nostrum prosper under any oil price scenario over the coming years.