RNS17 Aug 2015 08:12
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Green Dragon Gas Ltd (GDG)
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Monday 17 August, 2015
Green Dragon Gas Ltd
Interim results
RNS Number : 1850W
Green Dragon Gas Ltd
17 August 2015
17 August 2015
GREEN DRAGON GAS LTD.
("Green Dragon" or the "the Company")
Interim results for the six months ended 30 June 2015
Green Dragon Gas Ltd. (LSE:GDG), the leading independent gas producer with operations in China, is pleased to announce its unaudited interim results for the six months ended 30 June 2015.
Financial Highlights
· Revenue increased 8% to US$ 16.8m (H1 2014: US$ 15.5m)
- follows an increase in Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) sales, and in the weighted average CNG price in Greka retail stations, as previously announced
· Gross profit increased 121% to US$ 11.9m (H1 2014: US$ 5.4m)
- increased gas sale volumes at stable prices, while costs lower due to fixed costs spread over larger volumes
· Cash of US$ 49.4m at 30 June 2015 (US$ 80.0m at 31 December 2014)
· Capital expenditure increased to US$ 19.4m (H1 2014: US$ 7.8m)
- in accordance with this year's objective and focus on infrastructure investment and drilling to deliver increased production
· Net loss from continuing operations decreased by 98% to US$ 1.4m (H1 2014: US$ 69.3m)
Outlook
· Continued focus on infrastructure investment to enable production and sales from drilled wells
· 30 well LiFaBriC drilling programme on track:
- 18 wells drilled and 8 LiFaBriCs connected to infrastructure in H1, with a further 14 wells planned for H2 2015
· Exit rate at end of H1 of 10.15 Bcf per year and on track to reach 12 Bcf per year annual production target
· Gas pricing to remain unaffected by any Chinese market volatility or potential future Chinese Yuan devaluation
Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:
"We are pleased to announce another set of strong financial results from Green Dragon Gas, following the gradual ramp-up in our production and sales through the first six months of 2015. In addition, we have continued to benefit from a uniquely strong pricing position environment in the context of the on-going volatility in the sector, due to our strategic position in the high demand Chinese gas market. The increase in capital expenditure in the first half reflects the progress in our current continuing drilling campaign. A significant number of vertical wells were drilled during H1 and we are excited to commence our LiFaBriC drilling campaign in H2. In addition we have benefitted from investment in infrastructure allowing us to sell gas produced by existing wells, increasing production to achieve an H1 exit rate of 10.15 Bcf per year and giving us full confidenc