LONDON (Alliance News) - Diversified Gas & Oil PLC on Tuesday said its profit fell in the first half of the year due to a substantial loss on derivative financial instruments.
The company's revenue more than quadrupled in the first half of the year to USD58.0 million from USD10.9 million as total production increased to 3.4 million barrels from 581,000.
Pretax profit, however, dropped to USD21.4 million from USD29.4 million. A loss of USD18.4 million on derivative financial instruments, compared to a loss of only USD540,000 the prior year, was the largest single contributor to this drop in profit.
The company has declared a dividend of 2.8 cents per share for the quarter, up 62% from 1.725 cents in the first quarter. In combination, the first and second quarter dividends are more than double the previous first half dividend of 2017.
"Our near-term focus will remain on extracting maximum value from our enlarged portfolio by leveraging operating synergies to drive both top line growth and further cost reductions that collectively elevate our already compelling margins. Our operating environment is increasingly positive, and we continue to screen a robust pipeline of growth opportunities," said Diversified Gas & Oil Chief Executive Rusty Hutson.
Shares in Diversified Gas & Oil closed up 1.8% at 111.00 pence on Tuesday.
