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Energy

Riverstone Energy says oil market volatility is likely to remain elevated

"Today's results demonstrate REL's resilience as oil price volatility resumed in the first half of 2017,” said Richard Hayden, Riverstone chairman

Oil and gas investor Riverstone Energy Ltd (LON:RSE) cautioned that global market volatility is likely to remain elevated, and, it believes low-cost oil-weighted producers will continue to outperform.

Specifically, Riverstone said that North American energy investments retain an advantage in the global marketplace due to low breakeven costs, short-cycle times and high asset liquidity.

"Today's results demonstrate REL's resilience as oil price volatility resumed in the first half of 2017,” said Richard Hayden, Riverstone chairman.

“Despite a 14 per cent decline in the price of West Texas Intermediate, the net asset value declined by 1.8 per cent, reflecting continued operational successes and the portfolio's emphasis on low-cost basins."

In reference to its own investments, the company said its 14 active investments as a whole are well placed to offer investors resilience and growth in a variety of commodity price environments.

Riverstone reported a US$30.6mln loss for the six months to June 30, which equated to a loss per share of 36.17 US cents.

The investment group had a net asset value of US$1.66bn, which is US$19.74 or £15.16 per share, and it ended the period with a market capitalisation of US$1.3bn or £1.06bn.

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