20th May 2019 12:24
LONDON (Alliance News) - Volga Gas PLC on Monday said its production increased in the first third of 2019, causing revenue to rise despite a reduced average price per barrel.
Shares in Volga Gas were up 4.4% at 83.00 pence in midday trading.
From January 1 to April 30, Volga's total production averaged 5,859 barrels of oil equivalent per day, rising from 4,010 barrels per day the year before. The increase was the result of higher processing capacity at its Dobrinskoye gas plant in Russia and the addition of liquid petroleum gas.
This 5,859 equivalent barrel per day figure is comprised of 21.3 million cubic feet per day of gas, up from 13.7 million cubic feet per day and 1,531 barrels per day of condensate - rising from 951 barrels per day. Also comprising this figure was liquid petroleum gas, which totalled 381 barrels of oil equivalent versus nothing the year before, and 747 barrels per day of oil - dropping from 775 barrels per day.
Production was in line with Volga's expectation for 5,900 barrels of oil equivalent per day in 2019 and took revenue for the four month period to USD14.6 million from USD12.4 million, a rise of 18% year-on year. This increase came about despite a drop in the average netback sale price for oil and condensate in the period to USD39.36 per barrel from USD43.96 per barrel.
The company's estimated earnings before interest, taxation, depreciation, and amortisation for the period was USD5.3 million, up from USD3.5 million. Volga's cash on April 30 was USD14.8 million, down from USD15.2 million.
Volga Chief Executive Andrey Zozulya said: "I am pleased to report that during this period, the company has had a strong performance operationally and financially. This performance is in line with management's expectations and the company is in a position to reward shareholders with a USD0.065 per share final dividend.
"The company is looking forward to delivering further improvements to the group's financial performance and to continuing distributions to shareholders, which will be considered by the board in September along with the 2019 interim results."
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