Melrose profit slumps 78%

Oil and gas explorer Melrose Resources reported a 78% decline in annual pre-tax profit, hurt by a drop in commodity prices, but believes 2010 will be a year of significant growth.Profit before tax of fell to $30.9m for the year ended 31 December 2009 from $143.3m in 2008. Turnover fell to $224m from $373m the year before. The group said it achieved a record level of production, underpinned by its core Egyptian fields and five new developments coming on stream."We now look forward to 2010 when we plan to bring two new Bulgarian gas fields on stream and to progress our other gas developments in the Western Black Sea towards project sanction," said chairman Robert Adair.Melrose added, "In what has been a difficult year for industry in light of the global economic downturn, Melrose has emerged in a strong position with a solid operating base, high value development and exploration projects to pursue and well supported debt facilities."A full year dividend of 3.1p per share has been recommended, up 10% from 2008.