SOCO hails 'transformational year'

International oil and gas exploration firm SOCO enjoyed record revenues in 2011 after striking it big off the coast of Vietnam.

Revenues for the year to the end of December were $234.2million, up from $48.4m in 2010.

However, the firm will not pay a dividend so it can fund ongoing development and exploration activities.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Pre-tax profits came in at $158.6m with earnings per share rising to 26.4c.

The firm's success was down to the performance of its Te Giac Trang (TGT) field, off the coast of Vietnam, which was brought into production in August 2011.

SOCO said the field had achieved approximately 40,000 barrels of oil per day and it was preparing for staged production increase.

However, this number originally came as a disappointment to investors after it was revised down from an original estimate of 55,000.

This announcement led to the firm's share price falling almost 10% at the start of November.

Despite this disappointment, Ed Story, President and Chief Executive of SOCO, said the past year has been a "transformational period" for the firm after production started at TGT.

"The cash flow generated has led to record levels of revenue and profits," he said.

"With this increased financial flexibility, Phase II development at TGT and continued exploration activities ahead, 2012 sees SOCO in a stronger position than ever to deliver value to shareholders."