25th Feb 2015 10:02
LONDON (Alliance News) - Forum Energy PLC Wednesday swung to a pretax profit in 2014 after reporting a significant rise in revenue, but warned its gross profit will be lower in 2015 due to lower oil prices and lower levels of production.
Forum shares were down 13% to 23.00 pence per share on Wednesday morning.
For the year ended December 31, the oil and gas company focused on the Philippines reported a rise in revenue of USD6.8 million from USD4.4 million a year earlier, driven by a 70% increase in production at the Galoc oil field.
This led to a gross profit of USD2.9 million from USD1.5 million in 2013, leading to a pretax profit of USD353,000, swinging from a USD3.3 million loss.
Forum reported working capital of USD1.0 million at the end of the period, alongside USD2.5 million available under the Philex loan facility, it said.
"Our producing Galoc field performed well in 2014 and we increased gross profit to USD2.9 million, but are expecting lower levels of gross profit in 2015, due to lower oil prices and lower levels of production at the Galoc field," said the company.
Forum has a 2.27% interest in the Galoc field, where gross production hit 8,000 barrels of oil per day in 2014, up from 4,720 barrels per day a year earlier. The ramp-up in production was a result of phase two production starting in December 2013, Forum said.
"Our largest producing asset is the Galoc oil field which accounts for 87% of our total income. We plan to continue participating in the continued development of the field to maximise our revenue stream," said the company.
The operator of the Galoc oilfield, the Galoc Production Co, is currently reviewing the options to move production into phase three, Forum said.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Lfeaccetfusd