Riverstone Energy's asset value rises but profit drops

Riverstone Energy has increased its year-end net asset value by 8.6%.

The FTSE 250 energy investment company said for the year to 31 December 2015, its net asset value rose from $1.24bn (£0.88bn) to $1.35bn.

However after its placing and open offer in December, the net asset value per share decreased from $16.31 to $15.95.

The group also posted a total comprehensive profit for the year of $8.4m, down from $20.6m in 2014.

Riverstone co-founders David Leuschen and Pierre Lapeyre Jr. said its investment strategy of backing "best-in-class" management teams, focusing on building premier companies over time, hedging commodity price risk and maintaining conservative capital structures has provided resilience amidst extreme levels of market volatility.

“With 16 investments across multiple basins and over $550 million of investable cash, we look forward to taking advantage of emerging opportunities driven by lower commodity prices."

Meanwhile Riverstone Energy has announced that chairman Sir Robert Wilson will step down from the board in May.

Sir Robert, who will continue as an advisor to the company, will be succeeded by senior independent director Richard Hayden, who has served on the Board since the Company's IPO in 2013.

Hayden will also take over as chair of the Nominations Committee and Management Engagement Committee, while Patrick Firth will replace Hayden as chair of the Audit Committee and as the company's senior independent director.

Sir Robert said he has enjoyed his tenure leading the Riverstone Energy board.

“[I] believe that the portfolio that we have built over the last two and a half years should prove to be a stepping stone to enable the Company to fulfil the potential identified at the time of the IPO.”

He said he is delighted that Hayden has agreed to take over as chairman.

“In addition to his considerable experience and personal qualities, his clear commitment to the interests of shareholders will contribute greatly to the future success of the Company."

Managing director James Hackett will also leave the board, but continue as a partner of Riverstone Holdings and a member of its investment committee.