SOCO Net Profit, Production Down

SOCO announced Wednesday that its net profit for the first half of 2015 was down $73.9 million, compared to the same period last year.

The company’s net profit in 1H 2015 was $5.9 million, which was a significant decrease from the $79.8 million figure posted during the first half of 2014. SOCO production averaged 11,856 barrels of oil equivalent per day during 1H 2015, compared to 13,960 boepd in 1H 2014.

Despite its net profit and production decrease, SOCO revealed in its results statement that it is debt free and has a cash balance of $96.6 million as at June 30, 2015. The company also claimed that the H5 development project, in the Te Giac Trang (TGT) field offshore Vietnam, is ahead of original schedule with first oil expected before mid-August.

Ed Story, SOCO chief executive officer, commented in a company statement:

“The main focus for 2015 has been the delivery of the H5 development with first oil now expected imminently, well ahead of the original September/October target. We continue to engage with our partners to optimize current performance of TGT, and to progress towards further development of the field, and are hopeful the start-up of H5 will serve as a catalyst to facilitate these efforts.

“Despite a challenging oil price environment, significant capital expenditure to bring the H5 development to first oil and the $51 million in dividends paid to shareholders during the first half of the year, SOCO remains in a strong financial position providing us with the strategic flexibility to access attractive opportunities that fit the business model and our regional expertise. We are excited to have signed a memorandum of understanding together with SOVICO Holdings, a leading Vietnamese banking, finance, real estate and industrial holding company, and PetroVietnam regarding potential exploration Blocks 125-126 in Vietnam.”

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