LONDON (Alliance News) - JKX Oil & Gas PLC on Monday said it swung to profit in the first half of its current financial year, helped by improved production and higher oil & gas prices in the Ukraine and Russia.
The exploration company said for the six months ended June 30, net profit totalled USD1.9 million compared to USD7.7 million loss reported in the previous year and the adjusted profit before exceptional costs stood at USD4.4 million versus USD5.0 million loss.
Revenue increased to USD42.4 million from USD36.8 million. The result was primarily driven by the higher commodity prices in both Ukraine and Russia, as well as the 1.5% increase in total group production.
Oil production was higher year-on-year at 151.0 million barrels of oil during the period compared to 141.0 million barrels of oil a year earlier, while gas production increased slightly to 8.60 billion cubic feet from 8.50 billion cubic feet.
Daily production increased to 837.0 barrels of per day from 779.0 barrels of oil per day, and gas production rose to 47.4 million cubic feet per day from 46.9 million cubic feet per day.
In Ukraine, revenue grew 15% to USD33.2 million due to higher oil sales prices and volumes. Total oil sales volumes increased 7.0% to 125,822 barrels from 117,541 barrels in the first half of 2017 while average oil sales price climbed to USD70.53 per barrel from USD557.45.
Meanwhile, in Russia, revenue also improved by 15% to USD9.1 million due to higher gas production volumes, which grew to 5.53 billion cubic feet from 5.00 billion a year earlier with average sales price seeing a 3.6% increase to USD1.66 per 1,000 cubic feet.
"Production of both oil & gas has increased across the group and enhancement and workover activity is at a high level in Ukraine," said Chairman Hans Jochum Horn.
"An improving cash position coupled with strong cost control initiatives will help to reduce our debt position and restore the balance sheet," added Horn.
Shares in JKX were trading 1.7% higher on Monday at 30.00 pence each.