MOSCOW (Reuters) - Russian oil producer Ruspetro RPO.L plans to delist on the London Stock Exchange from June 6 to become a private company, it said on Thursday.
Ruspetro, an oil and gas development and production company with assets in the Western Siberia, listed in London in early 2012.
The decision to be become a private company, which has yet to be approved by its shareholders, was prompted by declining oil prices, weaker interest from institutional investors and low liquidity, Ruspetro said in a statement.
As of April 13, its market capitalisation was 36.81 million pounds ($52 million) based on a share price of 4.23 pence, down from 134 pence when it listed in January 2012.
Among its largest shareholders is Kirill Androsov, a former deputy chief of staff of the government under then Prime Minister Vladimir Putin.
Its 2015 revenue fell to $44 million (31.09 million pounds) from $55 million in 2014, while net debt rose to almost $300 million at the end of 2015.
“The 2015 full year results demonstrate that the group is not generating sufficient cash from its current operations to cover the cost of capital investment, interest payments on loans outstanding and loan repayments due in the future,” Ruspetro said.
Reporting by Polina Devitt; editing by Jason Neely