Nostrum nine-month revenue hit by oil price decline

Nostrum Oil & Gas said its revenue in the nine to the end of September fell because of a decline in oil prices.

The London-listed company said its average daily production for the nine months to September 30 was 45,204 barrels of oil equivalent per day, above its targeted average of 45,000.

Revenue fell from $657.2m (£418.3m) to $620.3m because of the falling oil price, while earnings before income, taxation, depreciation and amortisation rose slightly from $412m to $413.2m.

“Despite a falling oil price we have increased our cash position and maintained a low operating cost base,” group’s chief executive Kai-Uwe Kessel said.

“We continue to progress with our development programme, to double production by the end of 2016, which will allow us to further unlock the significant value of Nostrum's reserve base.

“We will continue to monitor our costs closely, however, given our low cost base and existing hedge there is no need to alter our current development programme."

Nostrum shares rose 3.09% to 651.00p at 08:58 on Wednesday.