A lumpy tax charge and an ambitious capital expenditure programme at JKX Oil and Gas means shareholders will have to go without a dividend in respect of 2011.
Revenue in 2011 rose 23% to $236.9m from $192.9m the year before, even as production fell 12% to 9,045 barrels of oil per day (boepd) from 10,324 boepd the year before.
The group produced 401m barrels of oil in the second half of 2011, down from 432m barrels in the first half. Gas production eased to 7.1bn cubic feet in the second half from 7.7bn cubic feet in the first half of the year.
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Underlying profit before tax eased to $82.1m in 2011 from $95.0m the year before.
The average price realised per barrel of oil in 2011 was $98.27, up from $69.15 a barrel the year before. Gas prices also rose sharply, with the realised price for 2011 averaging out at $9.74 per million cubic feet (mcf) from $7.59 per mcf in 2010.
Basic production costs, excluding accounting adjustments and production based taxes, moved up to $5.22 per barrel of oil equivalent from $4.74 the year before.
Ukraine continued to be the engine of the group in 2011, providing the bulk of JKX's record turnover.
"Its strong cash flow allowed us to absorb a significant $62m increase in production taxes in the period. We have experienced a period of very intensive capital investment, notably in Russia. The board will therefore not recommend a final dividend for 2011," revealed JKX Chief Executive, Dr Paul Davies.
The decision not to pay a final dividend follows a similar decision to pass on making an interim payment.
"Our financial resources over the next six months will be stretched and it may be necessary to delay some drilling projects and the frac in Ukraine until later in the year," the group admitted.
The group's cash balance at the end of the year stood at $18.9m, down from $62.0m a year earlier.
The share price tumbled 13.75p to 170p during the morning session.
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