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Cadogan Petroleum swung to a profit in the first half of the year as lower costs eased the blow from a decline in revenues on lower volume of gas traded.
For the six months ended 30 June 2019, the company reported pre-tax profit of $2.6m, compared with a loss of £0.4m a year earlier even as revenues decreased to $3.3m from $5.31m.
Revenues were down by 37.5% over the same period in 2018 due to lower volume of gas traded, the company said.
Cost of sales fell 39% to $2.9m.
Production revenues, however, increased by 15.7% over the same period in 2018, despite a 15.6% reduction in the average realised oil price.
Average oil production increased to 297 barrels of oil per day in the half, a 27% increase on the corresponding period in 2018 and a 19% increase over 2018 average production.
'Overall, the first half of 2019 saw a robust operational performance and confirmed the positive profitability trend started in 2018, albeit the 2019 performance was partially masked by one-off negative effects, such as the loss in value of the gas inventory,' the company said.
At 9:52am: (LON:CAD) Cadogan Petroleum PLC share price was 0p at 6.25p