26th Nov 2013 11:57
LONDON (Alliance News) - IGas Energy PLC Tuesday said its pretax profit halved in its first half as increased costs offset positive sales and production figures.
The onshore hydrocarbon exploration and development company with operations in the UK said its pretax profit fell to GBP4.6 million for the six months ended September 30 from GBP10.3 million in the same period the previous year.
The company said its sales increased 8.4% to GBP36.2 million from GBP33.4 million as the company's net average production grew to 2,704 barrels of oil equivalent per day from 2,513 barrels the previous year.
However, operating profit fell 43% to GBP10.8 million from GBP18.9 million as the company's cost of sales increased to GBP19.8 million from GBP17.4 million and operating costs increased to GBP14.9 million from GBP12.4 million, including a GBP3.3 million charge related to the processing of oil from third parties, up from a similar charge of GBP2.3 million a year before.
IGas also said it incurred GBP300,000 in costs due to a two-week planned shut down for maintenance at its Singleton site in West Sussex.
The company said its acquisition of Caithness Oil Limited for about GBP8.5 million is anticipated to complete imminently. It said an exploration drilling programme at the Barton site near Manchester is underway in line with company plans.
IGas Energy shares were down 0.3% to 110.62 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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