Thursday 22 February 2018

PetroNeft buoyed by profit boost

OIL

John Mulligan

Oil firm PetroNeft Resources said it produced nearly 400,000 barrels of oil in the first half of the year and generated a $3.8m (€2.8m) pre-tax profit.

The AIM-listed Irish firm, which controls acreage in Russia, said revenue in the period more than tripled compared to the full 2010 financial year, to almost $16m (€11.7m). Its gross profit of $3.1m (€2.26n) compared to a figure of just over $870,000 (€636,102) during the whole 2010 financial year.

Shares in PetroNeft collapsed by nearly 25pc in a single day during June after it revised production targets down, halving targets.

But the stock jumped in July and August after the company first said that it would benefit from tax discounts, and then said that it had made its biggest oil discovery to date in western Siberia. It believes the prospect could deliver more than an initial 44-million barrel target after a thick layer of oil was discovered there.

"The first half of 2011 has been a busy period for PetroNeft in terms of both production and exploration," said chairman David Golder.

"Our production this year and in future years is very good," he added."

Irish Independent

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