LONDON (Alliance News) - Fortune Oil PLC Thursday said pretax profit jumped in its full year as it booked large revaluation gains and disposed of its natural gas business.
The oil and gas company focused on China said its pretax profit for the fifteen months ended March 31 increased to GBP195.4 million from GBP28.7 million for the twelve month period ended December 31, 2012.
The company reported for the longer period after it decided to change its financial year end to March 31.
Fortune Oil said its total revenues, excluding jointly controlled entities, increased during the period to GBP377.8 million from GBP214.6 million previously, but its cost of sales almost doubled which meant its gross profit levels fell to GBP22.9 million from GBP34.6 million.
However, the company registered GBP95.3 million in revaluation gains relating to China Gas Holdings, as a result of China Gas becoming an associate company, and GBP119.7 million from the disposal of its natural gas business to China Gas in 2013, leading to the increased profit at the pretax level.
"The company's strong position, significant industry experience and clear strategic focus has allowed us to benefit from opportunities that have arisen and we remain confident of continued success in the coming years," Chairman Qian Benyuan said in a statement.
Fortune Oil shares were up 2.4% to 12.29 pence on Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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