LONDON (Alliance News) - Regal Petroleum PLC on Friday said its profit multiplied on a significant reversal of an impairment of its oil & gas assets while revenue also rose on higher gas prices and improved production.
The Ukraine-focused oil & gas exploration company said average daily gas production from the Mekhediviska-Golotvshinska and Svyrydivske fields over the six months to June 30 was 275,772 cubic meters a day compared to 133,951 cubic meters of gas produced daily in the period in 2017.
Average daily production of gas from Vasyschevskoye field totalled 86,491 cubic meters per day, down slightly from 86,770 cubic meters produced daily a year before.
In the first-half, average realised gas prices stood at USD280 per cubic meter, up from USD226 per cubic meter paid the year prior. Regal Petroleum noted that from July to Thursday, average gas price reached USD310 per cubic meter.
Cost of sales for the six month period were also higher, at USD12.8 million versus USD9.2 million at the same time in 2017, mainly due to higher production of hydrocarbons.
Revenue almost doubled year-on-year to USD24.6 million from USD12.6 million, pushing a pretax profit up to USD45.0 million from USD1.7 million.
During the period the company said there was a significant reversal of an impairment of its oil & gas assets of USD36.1 million.
"Whilst there are still challenges in the business environment in Ukraine, the situation is improving and the group is continuing to progress the development of its Ukrainian fields," said Chairman Chris Hopkinson.
"We are looking forward to achieving further successes in the development activities planned for the remainder of 2018 and delivering a steadily increasing production and revenue stream in the future," added Hopkinson.
Regal Petroleum shares were up 5.3% on Friday at 44.23 pence each.
