Fortune Oil Highlight 2009 Financial, Operational Results
Fortune Oil reported its results for the financial year ending December 31, 2009.
- Revenues increased by 11 percent to £404 million (2008: £365 million).
- Operating profit more than doubled to £19.3 million (2008: £9.0 million), the highest in the Company's history, after excluding gains on disposal in both 2008 and 2009.
- Profit attributable to equity shareholders was £8.8 million (2008: £9.0 million).
- Gas distribution operating profit increased by 36 percent to £8.8 million (2008: £6.4 million).
- Bluesky contribution turned from a loss of £3.0 million in 2008 to a profit of £4.2 million in 2009.
- Earnings per share of 0.47 pence (2008: 0.49 pence).
- Net cash from operating activities increased by 180 percent to £25.7 million (2008: £9.2 million).
- Net cash position at 31 December 2009 of £7.2 million (2008: £5.6 million).
- New loan facility of US $80 million signed on April 14, 2010.
- Every Fortune Oil business achieved higher volume sales and higher operating profit than in 2008.
- Gas sales increased by 36 percent to 482 million cubic meters (2008: 354 million).
- Fortune Gas now has 142,000 connected customers, 941 km of pipeline, 27 CNG stations and 2 LNG trains.
- Bluesky posted a record performance, with an increase in domestic travel demand and a stable fuel pricing regime in place.
- Independent probable plus possible reserve estimates in the Liulin CBM block tripled to 2.4 billion cubic meters.
- Significant investment in Liulin CBM block by Arrow Energy International: US $13.3 million already received and options issued for further payments exceeding US $53 million.
CURRENT TRADING & OUTLOOK
- China's economy growing strongly, providing favorable trading conditions, with surging demand for energy.
- Significant state investment in infrastructure that assists Fortune Oil's commercial objectives.
- Board changes, including promotion to Chief Executive of Tee Kiam Poon, who has more than 30 years' experience working with BP in Asia.
Mr. Qian Benyuan, Chairman of Fortune Oil, commented, "As energy demand in China continues to grow, all of Fortune Oil's ventures performed strongly. Demand for natural gas continued to outstrip supply and our gas business continues to be the Company's principal growth engine.
"Last year was our best on record in terms of volume sales, profit and strategic progress, despite the economic uncertainties that affected many other industries. Our operating performance and strong financial position now leave us well placed in an increasingly favorable trading environment and a growing economy. We continue to see new opportunities as China's energy demand energy surges and, particularly through our alliances, we will continue to strengthen our business."
- Fortune Oil Appoints Acting Chief Executive (Dec 02)
- Fortune Liulin Gas Aims for ODP Approval for Chinese CBM Project by 2014 (Sep 06)
- China's CBM Industry: Slow and Steady Progress (Sep 05)