Rockhopper Exploration's shares
plunged after saying it had widened its annual loss to 75m dollars from last year's 53.7m dollars, reflecting a 122m dollar
tax bill from the Falkland Islands government.
The oil explorer's posted a loss per share of $26.47 for the year ended March 31st, up from the prior year's loss of $19.92.
In October 2012, Rockhopper sold 60% of its stake in the Sea Lion development in the Falklands to Premier Oil for $231m in cash, a $722m development carry and an exploration carry of $45m.
The consideration of the farm out of the Sea Lion project triggered a capital gains tax liability. The group was hit with a tax charge of $122m of which $78m related to the tax due to the Falkland Islands government and $44m to a deferred tax charge.
Rockhopper is in ongoing discussion with the government over the total amount of tax to be paid.
The firm made a pre-tax profit of $47m for the year, up from a loss of $53m in the previous year, but it was offset by the capital gains tax on the Sea Lion farm out.
"Your board is disappointed with the way that the stock market reacted to the farm out despite our clearly explaining at the last annual general meeting the value created compared to the alternatives," said Chairman Pierre Jungels.
"We have around 150m barrels of fully funded oil, which in the present financial market conditions is a good place to be."
The Sea Lion has recoverable resources of 337m barrels should a gas cap exist, and 402m barrels if there is no gap cap. Rockhopper expects a 50% chance of a gas cap being in place.
The company said it had $298m of resources available at the end of the fiscal year which, putting the group into a strong position to continue playing a lead role in the further exploration of the north Falkland basin.
Shares fell 12.75% to 119.75p at 13:57 on Thursday.
Shares in PowerFilm plunged by over a third after the gross margin for the first half plunged and the net loss widened.
Revenue for the period totalled $3.3m, down from $4.3m for the same period the previous year, after product sales suffered from a shortfall in distributor revenue, as well as a delay of 2013 first half shipments for two large customers to the second half of 2013.
As a result the net loss climbed from $0.66m to $0.97m, while the gross margin plunged from 20.7% to 4.7%, partly due to a number of fixed production costs, which included higher equipment depreciation for machines placed in service at the end of 2012 and manufacturing building overhead.
Looking ahead the group said: "In the context of a highly unpredictable global economy and price-pressured solar industry, it is challenging to predict the future.
"PowerFilm has taken difficult but necessary steps to re-focus on those product applications and markets in which the company's custom engineered product solutions are differentiated, valued, provide strong gross margin, and sufficient volume. Much has been achieved in the programme for reducing company spending and this will continue.
"We are deploying our cash conservatively while the markets remain uncertain and are constantly working to make improvements to be well positioned when external conditions improve."
Basic losses per share totalled three cents, up from two cents in the same period in 2012.
The share price fell 37.5% to 5p by 10:05 on Thursday.