Salamander profits rise but production is lower

SALAMANDER Energy recorded a pre-tax profit for 2011 but production slipped, it said yesterday.

The oil and gas group swung back into the black as it saw a profit of $112.6m (£70.5m) in the 12 months to 31 December.

The previous year the company recorded a $113.7m loss. Revenues rose from $323.4m to a record $408m, but still missed consensus forecasts of $464m.

Average daily output in 2011 fell to 18,600 barrels of oil equivalents per day (boepd), compared with 20,300 boepd in 2010. This is expected to fall further in the current year, to 12,000-13,000 boepd, due to the sale of the ONWJ and SES production sharing contracts (PSCs).

The group assured that production rates should exceed the 20,000 boepd mark once again in 2014 due to increased volumes from the Bualuang field and the start of production from the Kerendan and South Sembakung developments.

“2011 was an important year. We have also materially grown our reserve base,” said chief executive James Menzies.

No dividend was paid and none is being planned.