16th Sep 2014 09:25
LONDON (Alliance News) - Global Energy Development PLC saw its shares fall Tuesday, after it said profit and revenue dropped in the first-half of the year, due to a fall in oil prices and production volumes.
On the back of a fall in revenue, the Latin America-focused petroleum development and production company posted a lower pretax profit of USD1.9 million for the six months to June 30, compared with USD4.1 million in the first-half of 2013.
Revenue fell to USD14.9 million, down from USD19.7 million last year, due to lower production volumes and a fall in oil prices, averaging at only USD86 per barrel, compared with USD91 per barrel last year.
Sales of net oil volumes decreased to 172,597 barrels, compared to 215,804 barrels during the first-half of 2013.
"The first six months of 2014 reflected mixed results... The closing of the farm-out partnering agreements for the Bolivar and Bocachico Contract areas were a positive step. Although the emulsion blockage from the Catalina #1 - Simiti formation test delayed results of new oil production from the Company's Bolivar oil reserves," said Managing Director Stephen Voss in a statement.
The company said the costs of sales decreased by 22% in the first-half, due to lesser reliance on diesel fuels and reductions in both rental equipment and operational personnel costs.
"Lower average oil pricing led to decreased turnover for the period, but our improved efficiencies in our Llanos operations helped to partially mitigate the lower turnover. Cash flow from operations from our Llanos properties remains strong, and the company was able to reduce its debt balance by 25%," said Voss.
Global Energy Development shares were trading 4.4% lower mid-morning Tuesday, at 43.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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