Weak Russian ruble pushes Urals Energy into net losses for 2013
For 2013, Urals Energy posted net loses totaling $273,000 for its exploration and production operations in Russia. In 2012, Urals Energy posted a net profit of $2.6 million, LSE reports.
Despite the net loss, Urals Energy announced that its net revenues increased to $50.3 million during 2013, compared to the $49.9 million posted in 2012, due to increased oil prices during the year.
The company was able to reduce its operational costs of sales last year, a fact to which the company attributes to the 2013 operational profit of $2.8 million. In 2012, the company's operational profit was only $100,000, according to LSE.
Meanwhile, 2013 profits took an eight percent cut last year due to the fall in value of the Russian ruble compared with the relative strength of the U.S. dollar.
Analysts from Urals Energy estimated that if the ruble had remained strong in 2013, the company's net profits would have reached $3.6 million, LSE reports.
As a result of Ural Energy's poor performance in 2013, its board of directors attempted to oust the company's two largest shareholders: East Corp and Alpcot Capital Management.
During a meeting in January, however, 67 percent of voting shareholders voted against proposals to remove East Corp and Alpcot Capital Management representatives, according to LSE.
As of Friday, June 27, Urals Energy shares were trading at $0.07 per share--an increase of 2.4 percent over the previous week.
- Ural Airlines modifies rewards program
- Exhibition to celebrate Tchaikovsky's birthday
- Ural State Academy of Architecture and Arts hosts first StartUp Design Week
- URFU hosts annual natural history festival
- Robocenter added to map of important robotics centers
- Sverdlovsk housing market prices increase
- Volschansk Mechanical Plant expanding product range
- Sverdlovsk Regional Entrepreneurship Support Fund to accept applications for CMEF
- Over 4,500 residents have already lost jobs this year in Sverdlovsk
- USMU accepting Global Education program applicants