RusPetro swings to first-half loss, shares drop

Revenues at West Siberia-focused oil and gas group RusPetro tripled in the first six months of the year, a 'transformational' period since its flotation in London in January, the firm said.

However, shares dropped on Wednesday morning after the company reported a pre-tax loss of $26.4m, compared with a profit of $0.6m in the first half of last year. Cost of sales surged from $16.1m to $31.4m, while selling and administrative expenses from $5.4m to $27.0m.

By 08:16, shares were down 5.78% at 133.32p.

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Revenues jumped from $11.04m to $33.8m in the first half as total production surged to 720,026 barrels, up from 270,220 barrels the year before, while average output increased from 1,494 barrels of oil per day (bopd) to 3,956 bopped.

Proved resources increased to 183m barrels by June 30th, up 6% on December 31st 2011 and 16% on August 2011.

"Operationally we have made significant progress in developing our drilling, production and surface infrastructure programmes since our listing. Most of the surface infrastructure projects were completed ahead of schedule and under budget which is testimony to our operational discipline," the firm said.

16 wells have been drilled and completed in the year to date, though just five were completed before June 30th; 11 have completed since period-end. Eight well are now in process.

Current production stands at 6,100 bopd and the firm has maintained its 2012 production exit rate target of 10,400 bopd with output expected to "accelerate strongly through to the end of 2012".

Full-year average production rate is forecast to be around 5,600 bopd in 2012.

The group said that its balance sheet position had improved significantly since its initial public offering (IPO). Net debt fell from $405.2m at the end of 2011 to $277.0m.