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Still a very challenging environment for commodity funds like Riverstone Energy

Riverstone Energy (RSE) reported interim results, spanning the six months to 30 June 2020. The NAV was down by (43%) and (40%), in USD and GBP terms, respectively. The Hammerhead, ILX III, and Liberty II holdings were the main detractors.

Some of the key figures from the period, as at 30 June, include:

NAV

$379m (£308m)

NAV per share

$5.48 / £4.45

Profit/(loss) for Period ended

$(355.18)m

Basic profit/(loss) per share for Period ended

(457.59) cents

Market capitalization

$319m (£259m)

Share price

$4.62 / £3.75

‘COVID-19 continues to weigh on the market dynamics of energy’

In the manager’s outlook section of the results report, RSE said: “The second quarter of 2020 continued to present a challenging market environment for energy companies.  While spot prices recovered modestly, the coronavirus pandemic continued to pressure global demand.”

RSE’s chairman, Richard Hayden, added: “While commodity prices recovered moderately at the end of Q2 2020, the ongoing spread of coronavirus continues to create significant uncertainty and weigh on the market dynamics for energy.  In addition to portfolio company initiatives, REL has been working to unlock shareholder value through share buybacks, which were executed in May. The board remains very focussed on working with the manager to weather through this difficult period and support value creation for shareholders.”

About RSE

RSE is a closed-ended investment company that invests exclusively in the global energy industry across all sectors. RSE aims to capitalise on the opportunities presented by Riverstone’s energy investment platform. RSE has 10 active investments spanning oil and gas, renewable energy, power and energy services in the Continental U.S., Western Canada, Gulf of Mexico and Europe.

RSE: Still a very challenging environment for commodity funds like Riverstone Energy

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