Shares in Ophir Energy (LSE: OPHR) fell by as much as 24% this morning, after the group said a deal with US oil services giant Schlumberger to develop its Fortuna FLNG project in Equatorial Guinea had fallen through.
Few industries are as cyclical as the oil & gas sector, which can be awful for shareholders on the way down but offer great opportunities for patient investors to buy great companies at depressed prices.
January was a tough month for investors in Asia and Africa-focused gas and oil explorer Ophir Energy Plc (LSE: OPHR), but it was a tough month for pretty much every energy stock, as fears of a Chinese hard landing intensified.
In 2012, Tullow Oil (LSE: TLW) recorded a pre-tax profit of over $1.1bn. However, in the last two years it has made combined losses of over $3.3bn, which shows just how challenging the oil and gas industry has become.