Premier Oil shares rise as profits grow in spite of output drop
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FTSE 250 hydrocarbon firm Premier Oil (LON:PMO) produced 76.2 kboepd during the first half, lower than the same period of 2017 due to asset sales and natural decline. Despite this, post-tax profits more than doubled to $98.4 million, in part due to funds receives from the discontinued Pakistan unit.
Overall production guidance for the year is unchanged and July was a strong month for output. Management said that platform construction at the Tolmount site would begin in December alongside appraisal work at Zama.
Chief Executive Tony Durrant said that: “Premier met its operational targets for the period. The Catcher Area is now at plateau production rates which, together with higher commodity prices, is driving free cash flow generation and net debt reduction. We have progressed our development projects while maintaining strict capital discipline. We can also look forward to a high-graded exploration and appraisal programme which has the potential to deliver very significant value for the business.”
Shares in Premier Oil rose by 3.13% to 125.40p (as on 12:00 BST)
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