22nd Sep 2015 11:32
LONDON (Alliance News) - Thalassa Holdings Ltd Tuesday reported a drop in profit in the first half of 2015 as it booked higher depreciation charges in an oil and gas market which is in "turmoil" according to the company's chairman.
Thalassa, a holding company with two operating subsidiaries within the energy services industry, said that its pretax profit in the six months to June 30 fell to USD0.5 million from USD0.9 million in the first half of 2014, even though revenue rose to USD9.9 million from USD9.3 million, as it booked higher depreciation costs.
The company added that the global energy markets are in "turmoil" as excess oil and gas production has hit prices so that most oil production is unprofitable.
"The general outlook for the second half of 2015 remains uncertain as a direct result of the current challenging trading conditions pertaining to the depressed oil price and the resultant impact on exploration budgets. The company will continue to rigorously pursue pipeline opportunities for 2016 and exercise prudence with cost control," Chief Executive of the subsidiary WGP Group Mark Burnett said in a statement.
"We have overcome last year's operating problems and have substantially increased operating efficiency, which should result in improved financial performance," Chairman Duncan Soukup said in a statement.
"These are trying times for the oil industry. However, given our balance sheet strength and market leading service offering, I am confident that our company will survive and prosper," he added.
Shares in Thalassa were trading down 9.0% at 40.50 pence Tuesday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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