71
Three months ended 31 March
($ thousands)
2013
2014
Revenue ......................................................................................................
56,732
67,321
Cost of sales ................................................................................................
(31,762)
(35,161)
Gross profit
...............................................................................................
24,970
32,160
General and administrative expenses ..........................................................
(6,389)
(6,695)
Operating profit
........................................................................................
18,581
25,465
Net result from joint venture........................................................................
386
1,075
Gain/(loss) on held for trading derivative ...................................................
78
81
Fair value loss on convertible loans ............................................................
(2,899)
(3,016)
Other income ..............................................................................................
80
142
Foreign exchange gain/(loss) ......................................................................
-
(8)
Finance costs (net) ......................................................................................
(2,446)
(1,351)
Profit before tax
........................................................................................
13,780
22,388
Taxation charge ...........................................................................................
(2,032)
(2,100)
Profit for the period from continuing operations
...................................
11,748
20,288
Loss for the year from discontinued operations...........................................
(2,669)
(1,400)
Profit/(loss) for the year
...........................................................................
9,079
18,888
On a jurisdiction-by-jurisdiction basis, the Group’s revenue in the three months ended 31 March 2013 as compared to the
three months ended 31 March 2014 is presented in the table below.
Three months ended 31 March
($ thousands)
2013
2014
Egypt .............................................................................................
39,931
51,592
Yemen ...........................................................................................
16,801
15,729
Group revenue
.............................................................................
56,732
67,321
Revenue
Revenue increased by $10.6 million, or 18.7%, from $56.7 million for the three months ended 31 March 2013 to $67.3
million for the three months ended 31 March 2014. All Group revenues in both periods were from the sale of oil. The
increase in total Group revenues was primarily attributable to a significant increase in working interest production
volumes, as the Group achieved average daily working interest production (excluding Oman, for which production is not
included in Group revenue) of 19,902 boepd in the first quarter of 2014, an increase of 12.6% compared to 17,130 boepd
in the first quarter of 2013. The increase in the Group’s working interest production was mainly due to increased
production from ERQ and Abu Sennan in Egypt as a result of drilling new wells and successful workovers, partly offset
by the suspension of production in Blocks 5 and 43 in Yemen due to security reasons for part of the period.
Average realised sales prices were $105.4 per boe in the three months ended 31 March 2014, a decrease of 3.8%
compared to $109.6 in the three months ended 31 March 2013, contributing to the offset of the Group’s increased
revenue.
Cost of sales
Cost of sales increased by $3.4 million, or 10.7%, from $31.8 million in the three months ended 31 March 2013 to $35.2
million in the three months ended 31 March 2014. This increase was primarily attributable to significantly higher
depletion expenses and operating costs in the three months ended 31 March 2014 as compared to the three months ended
31 March 2013, as a result of the significant increase in the Group’s working interest production volumes.
