Caspian Sunrise shares (LON: CASP) plummeted 29.2% on Friday after the group released interim results for the year ending 30 June 2020.
Revenue increased from $4.4m to $5.0m, whilst the group reported a pre-tax loss of $1.4m.
Caspian Sunrise said that this period was “one of the most difficult since our 2007 IPO”, particularly blaming the Cornonavirus for disruption.
“Between 1 January 2020 and 21 April 2020, Brent Crude, on which the price for our export sales are based, fell from $63.65 per barrel to less than $10 per barrel. Domestic prices also fell from approximately $18.75 per barrel to approximately $6.2 per barrel. While international prices have partially recovered and for most of the past 3 months have exceeded $40 per barrel it is disappointing to report domestic prices remain at historic lows,” said the group in a statement.
“The extensive lockdowns in Kazakhstan led to serious disruption to our production and exploration activities. Crew changeovers were limited, vital supplies unable to reach the oilfield and there were long delays getting the required acid and engineers to the field for the long planned acid treatments to our existing deep wells.”
“The shutdown also impacted the renewal of licences and our appeal against what we are firmly advised are excessive state assessed historic costs at BNG. It also delayed the completion of the acquisition of the Caspian Explorer.”
Caspar Sunrise delayed certain projects amid the lockdown as well as cut staff numbers to cut costs.
Amid the Coronavirus disruption, the group has said that it plans to focus on preserving the group’s asset base to allow the continued development of potentially extremely valuable assets over the medium and long term.