Enwell Energy PLC on Friday said the ongoing war in Ukraine continued to have a huge impact on all aspects of life and business in Ukraine, as it posted a lower profit.
The Ukraine-focused oil and gas exploration and production company said pretax profit fell 14% to $30.4 million in 2024, from $35.2 million in 2023.
Revenue declined 28% to $44.9 million from $62.2 million. Cost of sales reduced 28% to $16.7 million from $23.2 million, while administrative costs were 11% lower, at £6.2 million compared to £7.0 million.
Chief Executive Officer Oleksiy Zayets said: ‘While most of 2024 was a further solid operational year for Enwell Energy, the ongoing war in Ukraine continues to have a huge impact on all aspects of life and business in Ukraine. Until November 2024, we were able to continue production at our Mekhediviska-Golotvshinska and Svyrydivske fields, which is testament to the diligence and fortitude of our operational team, but the regulatory action taken by the Ukrainian authorities that month resulting in the ongoing suspension of our Mekhediviska-Golotvshinska, Svyrydivske and Vasyschevskoye production licences is very disappointing.’
In January, the company had announced it mulled legal options after the reinstatement of suspensions of the Mekhediviska-Golotvshinska, Svyrydivske and Vasyschevskoye production licences in Ukraine. It had followed a decision by the Second Appeal Administrative Court in Ukraine to cancel one of the previous interim rulings of the Poltava District Administrative Court.
Enwell had said back then: ‘The company is continuing its legal proceedings to challenge the suspension orders, and is consulting with its external legal and other advisers to endeavour to mitigate the risks associated with the regulatory actions of the Ukrainian authorities.’
Enwell shares rose 2.8% to 16.96 pence each on Friday afternoon in London.
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