TXO Reports Maiden Operating Profit
TXO plc announced its unaudited interim results for the six months ended Sept. 30, 2006. Highlights are as follows:
--Maiden operating profit of $180,231 following year of solid consolidation --Six-month sales up 54% year-on-year --Gross profit increases 44% to $ 630,112 --EBITDA positive
TXO Chairman Robin Baum's statement:
"I am pleased to report to shareholders that during the half year to September 30, 2006 the company achieved its maiden operating profit following a period of consolidation and cost cutting that has positioned us solidly to build our production base.
"This important achievement for the company follows the rapid growth of the previous two years, and we are now confident that we are well-placed to deliver continued improvements in profitability in the period ahead.
"Our turnover grew to $1,562,930 for the first half year (2005:$1,013,508) which generated gross profits of $630,112 (2005:$436,236). This resulted in our first operating profit of $180,230 (2005: loss $151,220), which after financing costs gave rise to a loss for the period of $70,114. This compares with a loss of $409,625 for the corresponding period in 2005 and with a loss of $1,007,608 for the year to 31 March 2006.
"Our strategy going forward is to stay focused on our core business of working over our existing portfolio of wells and to ensure that we operate as economically as possible. We also intend to progress our drilling projects in West Texas, which our seismic studies have indicated to be very productive.
"In the longer term we intend to complete the merger with M-C Production and Drilling which will remove the current related party issues, increase production and improve profitability."