Regal Petroleum plc, an oil and gas company with assets in Ukraine, posted $5.76 million in net profit in 2014 against $127.16 million in net losses in 2013, the company said in its report on the London Stock Exchange on Tuesday.

Its revenue in 2014 shrank by 5.9%, to $34.57 million.

Its gross profit in 2014 soared by 3.9 times, to $11.87 million, while operating profit amounted to $6.35 million against an operating loss of $163.42 million in 2013, which was cased by assets write-off.

At the same time, the devaluation of the hryvnia in 2014 resulted in negative forex rate differences during the re-assessment of assets and in a combined loss of $56.7 million in 2014.

"Average production over the year ended December 31, 2014 was 152,744 m³/d of gas, 52 m³/d of condensate and 21 m³/d of LPG (1,370 boepd in aggregate), which was lower compared with 2013 predominately as a result of normal production decline and a well ceasing to produce (2013: 185,677 m3/d of gas and 42 m3/d of condensate (1,422 boepd in aggregate) - LPG production commenced at the end of 2013)," the report reads.

Average production for the period from January 1, 2015 to April 30, 2015 was 145,960 m³/d of gas, 45 m³/d of condensate and 21 m³/d of LPG (1,289 boepd in aggregate).

During the first four months of 2015, the average selling prices of gas, condensate and LPG were $294/Mm³ (UAH 6,185/Mm³), $52/bbl and $56/bbl respectively. The current selling price of gas is $280/Mm³ (UAH 5,790/Mm³).

"The continuing geopolitical situation has resulted in significant volatility and weakening of the Ukrainian hryvnia exchange rates, uncertainty in the gas sales price, the imposition of significant increases in subsoil taxes and disruption to the gas supply market over the 2014/2015 winter period," the report reads.

According to the company, capital investment was lower in the year as a result of the reduction in the field development program due to the geopolitical and economic uncertainty in Ukraine. Capital investment of $4.3 million predominately reflects investment in the Group's oil and gas development and production asset for the period (2013: $23.5 million).

"Cash from operations has funded the capital investment during the year, and the Group's current cash position and positive operating cash flow are the sources from which the Group expects to fund the 2015 development program," the report reads.

Cash and cash equivalents at December 31, 2014 stood at $31.8 million (December 31, 2013: $25.1 million), with cash and cash equivalents at May 22, 2015 being $31.9 million, held as to $18.3 million equivalent in Ukrainian hryvnia and the balance of $13.6 million equivalent predominately in U.S. dollars and sterling.