Magellan Petroleum reported consolidated net income of $1.6 million ($.03 per share) on gross revenues of $9.7 million for its fiscal second quarter ended December 31, 2009, as compared to a net loss of $525,000 (($.01) per share) on revenues of $5.2 million in last year's second quarter. Working capital was $52.6 million at December 31, 2009, an increase of $21.2 million over the same period last year.
For the six-month period ended December 31, 2009, the Company reported net income of $295,000 ($.01 per share) on $18.6 million in revenues, compared to net income of $983,000 ($.02 per share) on revenues of $15.6 million in the prior period last year.
Magellan's President and Chief Executive Officer, William H. Hastings said, "Results for the second fiscal quarter represent an improvement over last year and last quarter. Revenues and profits were up over last year's quarter due mostly to stronger energy prices, exchange rate fluctuation, and reduced production costs. Some of the Cooper Basin asset sales were completed during the quarter. Taken as a whole, Cooper Basin asset sales will generate a gain for the year of approximately $5.9 million including the impairment loss recorded this quarter of $1.6 million. The remaining gain will be recorded next quarter.
Also during the quarter, the Company reported an $800,000 gain on the sale of stock in an Australian Stock Exchange listed Company and a non-cash charge of $986,000 related to the increase in the value of the warrants issued to Young Energy Prize S.A. (YEP). This non-cash revaluation is driven by the increase in our share price."
Mr. Hastings added, "We continue to refocus the business model with the objective of gaining operating control of substantive, high potential, assets. The first step, the acquisition of the Poplar Dome structure is complete. Other plans remain active. Our current, smaller scale, non-operated positions have been sold at value. Over time, all of this activity may mean the addition of new equity partners and/or the generation of new operating partnerships with major Companies. Magellan is drawing upon the lengthy experience of its new management in pulling together these partnerships and creating value for shareholders.
Recent activity and initiatives to-date are summarized here:
Most Popular Articles
From the Career Center
Jobs that may interest you