The crash in oil prices has forced oil and gas explorer Premier Oil to cut spending on development next year by 40%.
And it has said it will write off some $300m in its 2014 results, due out next month.
Development spending on new oil fields next year, already cut to $600m, will be “subject to further review”.
The cuts mean the company is already in negotiations to reduce costs with a number of key contractors.
Premier said 2014 revenues are 6% up on 2013, but profits will be hit by an impairment charge estimated at $300m.
Tony Durrant, chief executive, said: “Premier is in a strong position to weather a period of oil price weakness due to its long-term cash flow generation.
“Premier has also responded to the sharp fall in the oil price with a broad programme of cost reductions and the postponement of discretionary spend.”
via BBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.