Global Energy rises on production gains

The South America focused petroleum firm Global Energy Development has cashed in on the rising oil price and boosted production.

Revenues for 2011 were £43.1m, up 81% on 2010, while production came in at 519,000 barrels, a rise of 29% on the prior year.

Global makes no secret of the fact that the rise in the price of oil, to an average of $95 per barrel over the whole of last year, versus $69 per barrel in 2010, has provided a strong uplift to the financial performance.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Operating profit came in at £8.3m while net profit was $2m, against a loss of $2.1m in 2010.

The firm's Chairman, Mike Faulkner said: "With the company's strong ... reserve base of over 118 million barrels of oil, we have a large upside for increased production levels and added value to the Company. We are moving in the right direction".

Shares in Global had gained 5.37% by 08:47. Over the last 12 months the stock has risen 20%.

BS