China: Fortune Oil Revenues Up 10 Pct

Fortune Oil today reported its results for the financial year ending 31 December 2011.

Financial highlights

• Revenues including share of jointly controlled entities increased by 10% to £625 million (2010: £567 million).
• Fortune Oil achieved record profit attributable to shareholders in 2011, up 39% to £18.2 million (2010: £13.1 million).
• Operating profit increased by 11% to £27.4 million (2010: £24.6 million).
• Basic earnings per share of 0.96 pence (2010: 0.69 pence) representing an increase of 40%.
• Dividend of 0.18 pence per share declared, to be paid out on 27 June 2012 representing an increase of 39%.
• Natural gas operating profit decreased by 3% to £10.5 million (2010: £10.8 million).
• Share in Bluesky Aviation’s net profit increased 32% to £11.6 million (2010: £8.8 million).
• Single Point Mooring Facility’s revenue increased by 15% to £17.2 million (2010: £15million).

Operational highlights

• Bluesky Aviation jet fuel sales increased 14% to 2.6 million tonnes (2010: 2.3 million tonnes).
• Single Point Mooring facility achieved record throughput of 11 million tonnes, 14% higher than the previous year (2010: 9.7 million tonnes).
• Four new city natural gas projects launched. There was a 16% increase in number of new domestic gas customers connected; 212,000 total customers.
• Three more lateral and four vertical wells were drilled and completed at Fortune’s Coal Bed Methane project in Liulin. The gas gathering system has been designed, key equipment ordered, and contractors appointed.
• Invested in the mining licenses for three iron ore mines in Armenia.
• Post year end established a Joint venture to invest in China Gas Holdings Ltd.

Ooutlook

• China Gas Holdings investment is expected to yield significant commercial opportunities for the natural gas business.
• Opportunities to expand the number of airports under the Bluesky joint venture.
• Drilling programme at Liulin targets gas production of 100,000 cubic metres per day.
• Continuing urbanisation and industrialisation of China will continue to require increased oil products and natural gas supplies.
• China 12th Five Year Plan requires natural gas as proportion of China energy usage to double by 2015.

Mr. Qian Benyuan, Chairman of Fortune Oil, commented:

“Fortune Oil delivered another strong performance in 2011 and continued to make significant progress across all core businesses. The Company’s strong position, significant industry experience and clear strategic focus has allowed us to benefit from opportunities that have arisen and we remain confident of continue success in the coming years.

“We are very excited about the growth prospects for Fortune Oil. We continue to strengthen our position in the China gas industry while still seeking opportunities in the oil sector. Given Fortune Oil’s attractive position within China’s expanding energy and resource markets, we remain confident of delivering further success in the future.”

[mappress]
LNG World News Staff, April 26, 2012