LONDON (Alliance News) - Diversified Gas & Oil PLC on Monday posted a strong increase in 2017 revenue in what it described as a "transformational" year which began with a listing on the London Stock Exchange.
Revenue for 2017 came in at USD41.8 million, well above the USD17.1 million it recorded in 2016. The increase was due to a series of acquisitions totalling nearly USD90.0 million in the year which more than doubled year-on-year production.
The company's pretax profit totaled USD4.7 million for 2017, down from USD32.5 million in 2016. The drop was due to increased administrative expenses, a more than halved gain on bargain purchases, and a loss on early retirement of debts compared to a large gain in 2016.
Diversified Gas & Oil declared a 3.45 cent final dividend, taking its total to 5.44 cents, which compares to a 1.99 cent total in 2016.
Net natural gas production increased to 13.1 million cubic feet from 5.9 million cubic feet, oil production rose 48% to 163 million barrels of oil, and it recorded maiden natural liquid gas production of 50 million barrels.
Average daily production more than doubled to 6.6 million barrels of oil equivalent, and net daily production since the period end has soared to 28 million barrels of oil equivalent following two further acquisitions.
Diversified Gas is focused on the Appalachian basin in the US, producing from reservoir above the "prolific" Marcellus and Utica shale plays.
The company listed in London in February last year, raising USD50.0 million.
Diversified Gas said 2018 promises to be a "step-change" in the company's financial and operational profile as it looks to integrate its new assets.
Chief Executive Rusty Hutson said: "Our first year as a public company can be characterised as one of remarkable success, transformation and progress."
"We delivered everything we said we would do at the time of our admission to AIM in terms of growing production through acquisition and subsequently provided the company with robust production and increasing cashflow that enables us to return cash to our shareholders as a reliable source of income through our dividend policy."
Shares in the company were up 0.2% on Monday at 86.19 pence each.
