75
Year ended 31 December
($ thousands)
2011
2012
Gross profit
.................................................................................
83,754
103,932
Exploration expenditure written off...............................................
-
(3,680)
General and administrative expenses ............................................
(17,903)
(20,791)
Operating profit
..........................................................................
65,851
79,461
Net result from joint venture .........................................................
1,119
3,052
(Loss)/gain on held for trading derivative .....................................
(75)
266
Fair value loss on convertible loans...............................................
-
(4,528)
Other income ................................................................................
384
223
Foreign exchange gain ...................................................................
683
320
Finance costs (net) ........................................................................
(7,508)
(1,157)
Profit before tax
..........................................................................
60,454
77,637
Taxation charge .............................................................................
(8,731)
(8,272)
Profit for the period from continuing operations
.....................
51,723
69,365
Loss for the year from discontinued operations .............................
(16,960)
(24,401)
Profit for the year
.......................................................................
34,763
44,964
On a jurisdiction-by-jurisdiction basis, the Group’s revenue in 2011 as compared to 2012 is presented in the table below.
Year ended 31 December
($ thousands)
2011
2012
Egypt .............................................................................................
120,245
168,241
Yemen ...........................................................................................
18,273
14,735
Group revenue
.............................................................................
138,518
182,976
Revenue
Revenue increased by $44.5 million, or 32.1%, from $138.5 million in 2011 to $183.0 million in 2012. All of Group
revenues in both periods were from the sale of oil. The increase in total Group revenues was primarily attributable to
significantly higher 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 13,673 boepd in 2012, an
increase of 49.2% compared to 9,165 boepd in 2011. The Group’s higher working interest production was mainly from
increased production from ERQ and Burg El Arab and the commencement of production from Abu Sennan in Egypt, as a
result of drilling new wells and successful workovers, as well as slightly higher production in Oman. Partly offsetting the
increase in working interest production and revenues was a decrease in Block 43 in Yemen resulting from a decline in
production from existing wells.
Average realised sales prices were $107.4 per boe in 2012, an increase of 1.9% compared to $105.4 in 2011, further
contributing to the Group’s increased revenue.
Cost of sales
Cost of sales increased by $24.2 million, or 44.2%, from $54.8 million in 2011 to $79.0 million in 2012. This increase
was primarily attributable to higher recognised depletion expense of $46.7 million in 2012 compared to $28.1 million in
2011, resulting from the increase in the Group’s working interest production, as described above. Also contributing to
higher cost of sales in 2012 was an increase in operating costs, from $26.7 million in 2011 to $32.3 million in 2012, as a
result of the significant increase in the Group’s working interest production volumes in various assets in 2012, partly
offset by slightly lower operating expenses in Block 43 in Yemen due to lower production, as well as operating expense
reductions across the Group.
