6th Mar 2014 12:03
LONDON (Alliance News) - Genel Energy PLC Thursday said its pretax profit more than doubled in the full-year as higher revenues and lower costs helped company finances.
The exploration and production company, with production operations in the Kurdistan region of Iraq, said its pretax profit increased to USD186.5 million from USD75.9 million in the previous year as revenues increased 4.3% to USD347.9 million from USD333.4 million in 2012.
The company said its revenues increased comprised of strong petroleum sales in Iraq, with full entitlement received for sales to domestic customers and to the Kurdistan Regional Government.
Genel saw particular improvement in cost of sales which fell 32% to USD140.7 million from USD208.4 the previous year as depreciation charges fell significantly to USD94.4 million from USD168.4 million offsetting increased production costs at USD46.3 million from USD40.0 million in 2012.
The company also said it made an exploration credit of USD3.1 million for the year compared with an expense of USD29.7 million the previous year as an impairment from 2012 was reversed due to encouraging new results during 2013.
Genel said its oil production average for the year was down slightly to 44,000 barrels of oil per day from 44,500 barrels in 2012 but Genel maintained positive production guidance for an average of 60,000 to 70,000 barrels of oil equivalent per day in the full-year 2014.
The company said upgrades at its Taq Taq and Tawke sites are on track to deliver processing capacity of 200,000 barrels of oil per day by the end of 2014 and its fully funded drill programme is ongoing, with five high-impact wells planned for 2014 targeting 1.2 billion barrels of oil equivalent of unrisked resource.
"The company remains very well-funded with USD700 million of cash on the balance sheet, giving us significant financial firepower to invest in new upstream opportunities as and when they emerge," Chief Executive of Genel and former Chief Executive of BP PLC, Tony Hayward said in a statement.
Genel Energy shares were up 0.2% to 1,090.62 pence in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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