Soco International provides preliminary results for year ended 31 December 2012

Monday, March 11, 2013
  • Record revenue of $621.6 million (2011: $234.1 million), a rise of 166%.
  • Consolidated the Group's interests in South East Asia portfolio with the $95 million acquisition of the outstanding 20% interest in SOCO Vietnam Ltd.
  • Continued strong cash generation from the Vietnam assets.

SOCO, an international oil and gas exploration and production company, today announces its preliminary results for the year ended 31 December 2012.

Financial Highlights (from continuing operations)

  • Record revenue of $621.6 million (2011: $234.1 million), a rise of 166%
  • 134% increase in after tax profits from continuing operations to $207.0 million (2011: $88.6 million)
  • 271% increase in operating cash flow to $334.8 million (2011: $90.2 million)
  • Cash, cash equivalents and liquid investments at 31 December 2012 were $258.5 million (8 March 2013: $320 million)
  • Approximately $34 million of ordinary shares and outstanding convertible bonds purchased in 2012

Operational Highlights

  • Consolidated the Group's interests in South East Asia portfolio with the $95 million acquisition of the outstanding 20% interest in SOCO Vietnam Ltd
  • Record Group net entitlement production volumes of approx. 15,500 barrels of oil equivalent per day (BOEPD) (2011: 6,730 BOEPD), a rise of 130%
  • Additional production brought on line at the Te Giac Trang (TGT) field, on budget and ahead of schedule (first time in Vietnam sector history); a full year ahead of Field Development Plan
  • Average gross total field production from TGT now above 50,000 BOEPD

Outlook

  • Continued strong cash generation from the Vietnam assets
  • Development drilling on TGT and Ca Ngu Vang
  • Appraisal well on the previously undrilled TGT H5 block Sustained capacity test on TGT FPSO pending
  • Exploration drilling on Lideka Marine East Well 1 (Republic of Congo) in H2 2013
  • Several new ventures are expected to be added to the portfolio over the next 12 months
  • 2013 return of capital to shareholders

Ed Story, President and Chief Executive Officer of SOCO, commented:

"The financial and operating results for 2012 demonstrate the transformation of this Company. With the TGT field's average gross production now over 50,000 BOEPD, the record revenues, cash flow and profitability speak for themselves. Moreover, higher rates of production over continued sustained periods support our earlier views of the size of this major oilfield. Further, as we look forward into 2013, SOCO is now poised to take advantage of more substantial future growth opportunities."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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