Advertisement

Sefton Resources posts drop in annual profit

Sefton Resources reported a 3.4 per cent drop in annual profit as the oil and gas company incurred higher costs.

Sefton Resources reported a 3.4 per cent drop in annual profit as the oil and gas company incurred higher costs.

Gross profit for the year to December 31st, after deducting the costs of sales from revenue, came to $2.8m compared to $2.9m the previous year.

Cost of sales rose to $1.5m from $1.2m, reflecting higher repairs and maintenance expenses and an increase in royalties payable from improved revenues.

Advertisement - Article continues below

Revenues climbed 3.6% to $4.3m, driven by a marginal rise in realised oil prices at an average of $103 per barrel.

Oil volume sold in California jumped to 42,498 barrels from 40,176 barrels due to the timing difference between production and sale of oil.

Earnings before non-cash charges, interest and taxes were $0.96m in 2012, down from $1.1m a year earlier.

During the year the company invested $5.2m cash invested in asset development, compared to $3.5m in 2011.

An additional licence was acquired in Kansas where a number of oil wells were drilled. The group is investing in a workover and recompletion programme that will see oil and gas wells brought back into production.

"Sefton has remained profitable while continuing to fund development and expansion of its assets and operations," Chairman, Jim Ellerton, said.

"From here, the company expects to add outside capital to continue this momentum."

Shares rose 5.56% to 0.48p at 09:14 Monday.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
Why the moving average is my favourite charting tool
Sponsored

Why the moving average is my favourite charting tool

Traders and technical analysts use "moving averages" to iron out daily fluctuations and give a much clearer picture of a market's direction. Dominic …
13 Jul 2020