18th Sep 2013 08:09
LONDON (Alliance News) - Indus Gas Limited Wednesday said its profits remained flat in its full year compared to the previous year despite increased sales.
The exploration-and-development hydrocarbons company with operations in India said its pretax profits remained at USD3.1 million for the 12 months ended June 30.
The company said sales increased 16% to USD8.1 million from USD6.8 million as it brought into operation the SGL Field, bringing total production at the company up to 2,444 million square cubic feet of gas.
Indus Gas said the cost of sales doubled to USD2.2 million from USD1.1 million, effectively wiping out the sales increase.
The company said it expects gas prices to increase over the coming years, and it is working on a new gas sales contract which is currently under negotiation.
The company continued its policy of acquiring and developing new exploratory assets, and exploratory expenditure rose to USD53.6 million from USD26.9 million as the company took part in an extensive appraisal drilling campaign to maximise its assets potential.
"Looking ahead, there will be continued focus on appraisal drilling, well testing, and also on securing the additional sales contract, in which we expect the new approved price increase for gas in India to be reflected," Chairman Marc Holtzman said in a statement.
Indus Gas shares were flat in early trading Wednesday at 900.00 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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