Salamander Energy profits hurt by sharp drop in oil production

 
City A.M. Reporter
SOUTH east Asia-focused oil and gas company Salamander Energy posted a 90 per cent fall in full-year profit yesterday, hurt by an impairment charge and lower production due to the sale of some assets.

The company sold its interests in Offshore Northwest Java and Southeast Sumatra assets in 2011 to focus on its two basins in Indonesia and one in Thailand.

Salamander said pre-tax profit for the year to December fell to $10.8m (£7.2m), from $112.6m a year earlier. The exploration company booked an impairment charge of $23.2m.

Revenue fell 10 per cent to $368m.

The company produced 10,800 barrels of oil equivalent per day, lower than the 18,600 barrels a year earlier.

Production for the current year is expected to be between 12,500 and 15,500 barrels a day.

“In 2013, we are looking forward to production growth, rising cash flows and a multi well-exploration programme that offers shareholders exposure to multiple catalysts across the full exploration and production cycle,” Salamander chief executive James Menzies said yesterday.

Shares of the company, which has a market value of about £510m, closed up 2.46 per cent at 204.3p yesterday.