Lekoil oil shares down as loss widens

Lekoil shares (LON: LEK) are down almost 18% on Friday’s opening.

The oil and gas exploration and production company published interim results for the six months ended 30 June 2020.

Net loss widened from $2.7m last year to $7.9m.

Lekoil said that the first six months of the year were “challenging” for the oil and gas industry with the detrimental effects of the pandemic and the subsequent drop in oil price.

The group “has navigated this demanding period with steady production and cashflow generation from Otakikpo in conjunction with significant cost reduction initiatives which are beginning to pay off as the wider global economy improves. We remain committed to creating value and attractive returns for our shareholders, our partners, employees and all our stakeholders.”

Lekan Akinyanmi, the chief executive, commented, “Despite the challenges of the first six months of the year, we have navigated this demanding period with steady production and cashflow generation from Otakikpo while implementing a range of significant cost reduction initiatives across our operations.

“We are excited and encouraged by the interest received and the progress made towards raising the requisite financing to develop our high quality portfolio of assets and delivering on our drive to unlock the significant value that exists within them. We remain committed to creating value and generating attractive returns for our shareholders, our partners, employees and all our stakeholders.”

Lekoil shares (LON: LEK) are currently -17.65% at 1,75 (1027GMT).