Soco International Swings To Loss On Exploration Costs, But Revenue Up

22nd Mar 2018 11:00

LONDON (Alliance News) - Soco International PLC on Thursday reported a significantly widened annual loss on higher exploration costs, but said revenue rose in full-year despite decline in output.

The oil company, which operates in Vietnam, the Republic of Congo, and Angola, said production in 2017 was 8,276 barrels of oil equivalent per day, down from 9,883 barrels per day a year ago.

Soco's commercial reserves fell to 28.1 million barrels at the end of the year from 33.3 million barrels at the close of 2016.

The group said that production for 2018 depends upon the outcome of the drilling programme on TGT and CNV fields, but is currently guided to a range of 8,000 to 9,000 barrels per day.

The effect on revenue was more than offset by an average realised crude oil price, which grew to USD56.43 per barrel from USD45.01 per barrel the prior year. As a result, revenue rose to USD156.2 million from USD154.6 million in 2016.

Despite that, Soco sunk to pretax loss of USD129.6 million compared with USD21.9 million profit the year before, as exploration expenses increased significantly to USD152.3 million.

Soco International declared a final dividend for the year of 5.25 pence per share.

Soco International President & Chief Executive Officer Ed Story said: "2017 saw the further return of cash to shareholders, stable production, and a renewed focus on SOCO's business strategy. Combined with a strong balance sheet, low operating costs and continued financial discipline the company is well positioned for growth."

"We have the right people and the right financial strength to create opportunities to grow the business and we look forward to delivering in 2018," Story added.

Soco International shares were trading 1.5% higher at 97.50 pence per share on Thursday.

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