11th Oct 2013 07:33
LONDON (Alliance News) - Europa Oil & Gas (Holdings) PLC Friday said it swung to pretax profit in its full year, as lower cost of sales in the recent year, set against significant impairments taken in 2012, resulted a big financial improvement for the company.
The AIM-listed oil and gas exploration, development and production company, focused on Europe posted a pretax profit of GBP400,000 for the twelve months ended July 31 compared to a pretax loss of GBP12.1 million the previous year.
The company said its sales fell 12% to GBP4.5 million from GBP5.1 million as lower production due to strategic development hit revenues, but Europa's cost of sales dropped even more substantially to GBP3.2 million from GBP15.9 million.
Europa noted that pretax profits, excluding impairments and exploration write-off costs, were GBP600,000 in the recent year, down from GBP1.2 million the year before. The company made an exploration write-off of GBP12.5 million and an impairment charge from producing fields of GBP785,000 in 2012. In the recent year, Europa took only an exploration write-off of GBP231,000.
The company secured new production joint-ventures during the period with Kosmos Energy Ireland and acquired new exploratory licenses in North East Lincolnshire, but wrote down its French onshore assets.
Europa said production from its three UK onshore fields is will be ahead of forecast at 182 barrels of oil equivalent per day.
The company said the year ahead promises to be a highly active period, including new drilling sites, completing 3D seismic studies offshore Ireland, and looking to acquire new assets.
In early trading Friday, Europa shares were up 1.3% at 8.48 pence apiece.
By Tom McIvor; [email protected]; @TomMcIvor1
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