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Riverstone Energy reports growth in NAV as oil price recovery lifts investor sentiment

Published: 18:25 15 Aug 2018 AEST

oil
Shares edged up 1.5% in morning trading

Riverstone Energy Ltd (LON:RSE) shares gained as it posted a 5% increase in net asset value (NAV) for the first half as a recovery in oil prices improved investor sentiment.

The oil and gas investment firm said NAV rose to US$1.75mln at June 30 from US$1.67bn the same time a year ago. Growth in NAV was driven by Houston-based joint venture ILX III, which is focused on acquiring non-operated working interests in the deepwater Gulf of Mexico.

READ: Riverstone Energy says oil market volatility is likely to remain elevated

Chairman Richard Hayden said: “What a difference a year makes. At this point last year, the price of West Texas Intermediate crude was struggling to breach US$50 per barrel, as the market remained stubbornly well supplied despite robust demand and production decreases within OPEC. This dynamic has now reversed, with prices gaining 50 per cent.  over the last twelve months to reach levels not seen since 2014.”

The group swung to a profit of US$10.75bn from a loss of US$30.55bn on the back of US$280mln of gross realisations. Some US$85mln of gross proceeds resulted from the sale of 4.4 million shares in Centennial Resource Development, Inc.

Riverstone ended the period with a market capitalisation of US$1.42bn, up from US$1.38bn last year, as the share price rose to US$16.85 each from uS$16.35.

Haydon said with about US$280mln in gross realisations in the first half, the company is “well positioned to take advantage of opportunities”.

Shares edged up 1.5% to 1,222p. 

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