(Alliance News) - Diversified Energy Co PLC on Friday said it swung to a profit in the first half of the year and upped its production, though revenue dropped by almost a half.
In the six months that ended June 30, the Alabama, US-based oil and gas production company said it swung to a pretax profit of USD828.3 million from a USD1.23 billion loss a year prior, driven by a gain on derivative financial instruments of USD812.1 million from a loss of USD1.7 billion.
Revenue fell by 48% to USD487.3 million from USD933.5 million the year before, mainly due to a 52% decrease in average realised sales prices, Diversified explained.
Adjusted earnings before interest, tax, depreciation and amortisation climbed by 26% to USD283 million from USD224 million in the first half of 2022.
The firm also reported its net average production grew by 4.4% to 142,000 barrels of oil equivalent per day from 136,000.
Diversified Energy also upped its dividend for the second quarter of the year by 3% to 4.375 US cents from 4.250 cents the year before.
Chief Executive Officer Rusty Hutson said: "These results reflect the resilience and consistency of our business. The execution of our disciplined strategic plan and the strength of our operational performance translated directly into strong financial results and allowed the company once again to generate robust cash margins despite lower natural gas prices."
Shares in Diversified Energy were down 0.1% 91.50 pence each in London on Friday morning.
By Sabrina Penty, Alliance News reporter
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Diversified Energy (DEC)