Fortune Oil announced results for the six months ended 30 June 2011.
FINANCIAL HIGHLIGHTS
– Profits attributable to equity shareholders increased 141% to £10.8 million (H1 2010: £4.5 million). The increase was primarily due to the strong contribution from Bluesky and gain on deemed disposal of a subsidiary.
– Continued strong growth in revenues, including the Group’s share of jointly controlled entities, up 35% to £300 million (H1 2010: £222 million).
– Group profit from operations, excluding the gains on deemed disposal of and disposal of subsidiaries, increased by 12% to £11.8 million (H1 2010: £10.6 million).
– Group profit before tax increased by 79% to £17.1 million (H1 2010: £9.5 million).
– Earnings per share increased 141% to 0.57 p (H1 2010: 0.24 p).
– Net cash position down 32% to £19.7 million as at 30 June 2011 (31 December 2010: £28.9 million) with the total Group cash balance remaining strong at £87.3 million (31 December 2010: £100.3 million).
OPERATIONAL HIGHLIGHTS
– Natural gas sales in the half year decreased by 20% to 237 million cubic meters due to restructuring of the natural gas business, which includes the divestment of certain gas assets.
– Commencement of extensive drilling programme across the Liulin coal bed methane (“CBM”) block. Gas gathering system is under development to enable commercial gas sales.
– Sales volumes at Bluesky rose by 11% to 1.2 million tonnes.
– West Zhuhai Products Terminal revenues and profit contribution to the Group decreased by 24% and 37%, respectively, due to lower utilisation by PetroChina.
– Maoming Single Point Mooring (SPM) revenues increased to £8.0 million as throughput increased by 8%, and net profit for H1 2011 was £2.0 million, RMB 20.6 million, (H1 2010: £2.3 million, RMB 23.6 million).
Mr Qian Benyuan, Chairman of Fortune Oil , commented:
“ I am delighted to report that Fortune Oil has continued to make excellent progress in the first half of 2011 building on the record performance achieved in 2010. Our natural gas business is in the process of being restructured but continued its momentum to become the growth engine of the Company .
“ The combination of our portfolio of assets, strong local relationships and geographical footprint in China, now the world’s largest energy consumer, will enable Fortune Oil to continue to build on this track record in the second half of the year, increasing our market share in China, and delivering shareholder value. ”
[mappress] Source: Fortune Oil, August 25, 2011;