A year ago, Afren's (AFR) market value stood around the £1.7bn mark - now you could pick up the oil producer for just £39m. But would you want to?
IC TIP:
Hold
at
3.29p
The beleaguered driller just reported a pre-tax loss of $1.75bn (£1.28bn) for 2014, against a profit of $140m in the previous year. The loss was driven by nearly $2bn in impairment charges, including a total write-down on its reserves at the Barda Rash oilfield in Iraqi Kurdistan.
Afren now plans to allocate the bulk of its capital in 2015 to its high-margin producing assets in Nigeria, although mid-range production guidance has been given at 27,500 barrels of oil per day (bopd) - a 14 per cent drop on last year.
