Afren joins the billion dollar club

Afren, the energy firm focused on Africa and the Middle East, has seen revenue smash through the billion dollar barrier thanks to increased production from its Eok and Okoro fields off the coast of Nigeria.

Revenue for the first nine months of the year surged to $1,077m from $312m in the corresponding period of 2011. The company realised an average oil price of $107.7 a barrel in the third quarter, down from $110.8 a barrel a year earlier, and an average gas price of $5.95 per million cubic feet (mcf), down from $8.53/mcf the year before.

Profit before tax from continuing operations leapt to $411.8m from $112.9m the year before, driving an increase in diluted earnings per share (EPS) from continuing operations to 10.9 cents from 6.23 cents the year before. Diluted EPS from all operations, including those discontinued, rose to 10.9 cents from 6.0 cents the year before.

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Year-to-date (as at November 11th), the net working interest production rate has been 42,033 barrels of oil per day, in line with expectations, leaving the group on track to meet 2012 production guidance.

"The company is on course to realise over a billion dollars of net operating cash flow in 2012, all from Afren's greenfield developments," stated Osman Shahenshah, Afren's Chief Executive.

"I am also particularly pleased to see our ongoing exploration campaign delivering commercial success; with multiple exploration and appraisal wells planned over the coming months in Nigeria, East Africa and the Kurdistan region of Iraq, Afren is well placed to continue to add to the growing reserves base," he added.

JH