19th Sep 2013 09:31
LONDON (Alliance News) - Mediterranean Oil and Gas PLC reported a loss for the first half, as its results were affected by administrative charges, lower sales of gas, and the closure of a profitable gas field.
The oil firm posted pretax losses of EUR3.4 million for the period ended 30 June, after making a EUR3.6 million profit a year earlier, while revenue declined to EUR5.4 million from EUR16.3 million in 2012.
The decline in revenues was largely the result of the Guendalina Field well GUE 2ss being taken offline in March to determine the cause of an influx of water.
Mediterranean Oil also suffered an impairment charge of EUR1.8 million as a result.
The site is particularly important as its provides the majority of the company's revenue and cash flow.
The company also saw an increase in administrative expenses, amounting to EUR3.6 million, compared with EUR2.1 million last year. It incurred legal fees of EUR444,000 in relation to the defence of the legal claim brought by Leni Gas & Oil PLC and Leni Gas & Oil Investments Limited.
Revenue from sales of gas and condensate and operatorship income fell to EUR5.4 million, from EUR7.9 million last year.
Net cash and cash equivalents stood at EUR14.1 million, compared with EUR4.1 million a year earlier.
The stock was trading at 6.08 pence Thursday, down 0.05 pence, or 0.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
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