13th Aug 2015 11:18
LONDON (Alliance News) - Bankers Petroleum Ltd Thursday said it swung to a pretax loss in the first half of 2015 after a small drop in production was compounded by realised oil prices falling 50% year-on-year, squeezing the company's margins.
The company reported a pretax loss of USD16.0 million in the first half of 2015, swinging from a GBP118.3 million profit a year earlier after revenue almost halved to USD136.8 million from USD265.6 million after a small fall in production was compounded by realised oil prices falling 50% year-on-year.
Production was down 2% in the half to 19,909 barrels of oil per day from 20,272 barrels of oil per day, leading to flat sales of 19,953 barrels per day at an average price of USD43.78 per barrel compared to a price of USD87.00 per barrel a year earlier.
The netback dropped 66% to only USD18.38 per barrel from USD54.74 per barrel whilst its cash margin was squeezed to USD26.39 per barrel from USD54.74.
"The company continues to carry out its 2015 capital program as planned based on an annual average oil price of USD50 per barrel of Dated Brent by managing spending to cash flow," said the company.
Capital expenditure in the second quarter totalled USD38 million on drilling 12 wells on its Albanian oilfields, comprised of 10 horizontal production wells, one water disposal well and one suspended well at the Patos-Marinza oilfield.
"Bankers' activities in the third quarter focus on its three part strategy to deliver reliable and repeatable low cost horizontal wells through the primary drilling program, to expand its product margin through surface-level improvements and to accelerate the enhanced oil recovery program," it added.
Since the start of July, production in the third quarter has averaged 19,500 barrels of oil per day from the Patos-Marinza and Kuçova oilfields in Albania, slightly lower than the second quarter average of 20,050 barrels of oil per day.
Befoe the end of September, another 12 wells will be drilled on the Patos-Marinza oilfield.
Bankers shares were up 3.7% to 125.00 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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