LONDON (Alliance News) - Soco International PLC said Thursday that its profit for the first half of the year increased as its revenue rose on the back of higher crude oil prices.
For the year to June 30, the oil & gas company posted pretax profit up to USD28.2 million from USD12.1 million a year ago.
This was achieved on the back of revenue increased by 26% to USD93.2 million from USD74.0 million, boosted by an increase in the average price of crude oil at USD74.08 compared to USD53.90.
During the first half, the company said that gross production averaged 26,773 barrels of oil equivalent per day, of which 7,748 boepd were net to Soco. This was slightly lower year-on-year when it was 8,606 boepd.
The company revised its production guidance to between 7,000 and 7,400 boepd to reflect "the additional delays to its drilling programme".
Soco expects cash capital expenditure to come in under USD30 million.
In a separate release, Soco said it reached an agreement to buy Merlon Petroleum El Fayum Co, an Egyptian oil & gas company, for USD125 million in cash and shares.
The consideration will be satisfied through the payment of USD136 million in cash and the issue of 66 million new Soco shares, representing 19.75% of its current issued share capital.
Shares were trading up 0.4% at 86.90 pence each.