Cadogan Energy Solutions PLC on Monday lamented the ongoing war in Ukraine and lower oil prices but reported a narrowed loss in the first half of 2023.

The Ukraine and Italy-focused oil and gas company said, in the first half of 2023, its pretax loss narrowed to $173,000 from $1.7 million a year prior.

Revenue declined 48% to $2.4 million from $4.6 million, which was driven by the fall in the company’s average realised oil price, which it said fell by 36%. The price for crude brent per barrel as at June 30 had declined 31% to $75.10 from $109.40 a year prior.

The loss was narrowed as the cost of sales decreased 33% to $2.1 million from $3.1 million, amid gains from net foreign exchange of $290,000, compared to a loss of $1.6 million a year ago. Further, Cadogan Energy reported no costs from changes in provision for loans, compared to a cost of $600,000 a year prior.

The company’s average production fell 11% to 298 barrels per day from 336 barrels per day a year ago.

‘[The first half of] 2023 was another semester with severe challenges caused by the invasion of Ukraine by Russia since 24 February 2022. Cadogan could not avoid the temporary shutdowns of its production during this period due to the severe constraints arisen in the country,’ Cadogan Energy said.

Looking ahead, the company expects to have sufficient resources to stay operational for the foreseeable future.

Cadogan Energy shares were 7.4% lower at 1.62 pence each in London on Monday morning.

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