Fortune Oil focuses on oil and gas supply and infrastructure projects in China. The Company is quoted on the full list of the London Stock Exchange and has its headquarters in Hong Kong.
Financial Performance
• Revenues including share of jointly controlled entities increased by 26 per cent to £115.0 million (restated 2006: £91.2 million).
• Profit from operations increased by 44 per cent to £5.0 million (2006: £3.5 million).
• Earnings per share grew by 80 per cent to 0.14p (2006: 0.08p), a record first half performance for Fortune Oil.
• Sales of natural gas almost tripled to 105 million cubic metres.
• Net profit at Bluesky almost doubled to £6.5 million with volume sales up by 11 per cent and increased margin resulting from government compensation mechanism.
• US$50 million loan facility signed with syndicate of international banks.
Operational Highlights
• Significant progress in developing an independent integrated gas business with Fortune Oil becoming the first foreign company in China to produce and distribute both LNG and CNG (liquefied and compressed natural gas).
• Partnership established with Chinese government for utilisation of gas from coal reserves in Shanxi Province.
• Ongoing drilling of pilot gas production wells to exploit the estimated 40 billion cubic metres of coal bed methane at the Liulin block in Shanxi Province.
• Continued growth in volumes and profitability in the oil sector operations.
Mr Qian Benyuan, Chairman of Fortune Oil, commented:
"Fortune Oil performed very well in the first half of 2007 with revenues, profits from operations and earnings per share all increasing strongly. We are now building a significant gas business, from upstream supply to downstream distribution. Combined with ongoing growth in our oil sector operations this promises an exciting and prosperous future for the Company and its shareholders.”