Profit declines at Mediterranean Oil & Gas despite rising revenue

Mediterranean Oil & Gas (MOG) saw a decline in profit in the first half of the year, despite a significant boost to revneues and fairly stable sales costs.

Turnover for the six month period increased from €4.7m to €7.9m year-on-year, while profit from continuing operations before tax fell from €2.9m to €2.1m. The cost of sales increased from €1.0m to €1.2m, while administrative expenses climbed from €1.4m to €2.4m and finance income declined from €6.2m to €0.1m.

During the period gas production rose to 26.2m standard cubic metres (scm), compared to 4.74m scm in the same period the previous year. The main reason for this growth was that the most recent half included a full six month's production from the Guendalina field.

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Chief Executive William Higgs said: "The first half of 2012 was a period of consolidation after the start-up of the Guendalina gas field. We used this time to chart the path for our business and have recently achieved key steps along that path, across our portfolio. Our focus on delivering excellent technical work has been rewarded with the farm-out in Malta and our retention of the operatorship for at least the first exploration well.

"The divestment of non-core assets onshore Italy will enable the team to concentrate on adding value at Ombrina Mare and Malta in the coming months, as well as adding additional opportunities for growth into our Resources Factory."

Cash at the period end totalled €4.14m compared to €3.7m at the end of the same half the previous year.

NR