Greka Drilling's annual revenues climb

Greka Drilling reported a 39 per cent increase in 2012 revenues following a strong operational performance for the year.

The China-focused oil and gas driller posted revenues of $60.9m for the year ended December 31st, up from $43.8m the previous year.

Total assets grew by $25.7m to $114.m, a 29% jump year-on-year.

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During the year, the company drilled 90 wells at a total of 147,126 metres compared to 50 at 88,224 metres in 2011.

However pre-tax profits fell $4.7m from $4.6m the year before due to higher administrative expenses as total headcount rose to 665 from 520 to support a rig fleet increase to 32.

"I am delighted to report that we have continued to grow the business on time and within plan," said Chairman and Chief Executive, Randepp Grewal.

"For the full year we have increased revenues, evaluated many unconventional basins in China, India and South East Asia."

The company anticipates profitable growth in China this year, complemented by expansion into India.

Greka also expects to establish the corporate headquarters in Singapore, to facilitate the growth outside China.

"We are concluding our discussions with several clients and expect to announce our expansion into India as the first step out from China within the widened Asian expansion plans," Grewal added.

Shares fell 7.62% to 24.25p at 09:44 Tuesday.

RD