Gulf Keystone’s shares dip amid debt repayment issues

Gulf Keystone’s shares dip amid debt repayment issues

Gulf Keystone Petroleum (LSE:GKP) shares dropped yesterday after the oil producer revealed it may miss a debt payment at the end of this month.

The Kurdistan-focused company reported it would use a grace period with its 18 April payments on bonds that will expire on 2 & 3 May.

The firm’s stock closed down by 26.57 per cent at 5.14p.

Jon Ferrier, Gulf’s chief executive said: “The additional detail on the potential interim investment scenarios being released today ensure an orderly market, and represents an important step as we prepare to embark upon detailed discussions with stakeholders.”

Ferrier also noted the firm is currently trying to restructure balance sheets, while addressing funding needs to ensure benefits for all stakeholders.

Gulf Keystone has been crippled by large debt due to previous high oil prices.

The company announced a net loss of $135m for the year on 31 December, down from a loss of $248.2m the previous year.

@RGNOnline