Medium-sized is beautiful, says Premier Oil

Oil and gas firm Premier Oil racked up record post-tax profits in 2012, which the group said demonstrated that there is a role for energy companies of its size, but debt rose significantly as the group continued to grow through acquisition.

Oil and gas firm Premier Oil racked up record post-tax profits in 2012, which the group said demonstrated that there is a role for energy companies of its size, but debt rose significantly as the group continued to grow through acquisition.

Total sales revenue from all operations reached a new record level of $826.8m, up from $763.6m, driven by higher commodity prices. The cost of sales was lower $414.9m, versus 2010's $530.5m, mainly reflecting a $25.9m impairment reversal against a $65.3m charge in 2010, due principally to the sustained high oil price environment, which necessitated an increase in the base price assumption used for the valuation of future cash flows.

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