| A Sterling effort as turnover is doubled |
| Written by Business Weekly | |
| Friday, 08 October 2004 | |
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Herts based Sterling Energy doubled its turnover to £5.34m and increased pre tax profit by 78 per cent to £1.98m in the six months ended June 30.
Herts based Sterling Energy doubled its turnover to £5.34m and increased pre tax profit by 78 per cent to £1.98m in the six months ended June 30. The firm attributed the healthy figures to its acquisition of Osprey as the fields’ gas production made it onto the company books for the first time this February. It also made clear its commitment to maximising production while oil and gas prices are high and looking at further acquisitions once prices fall. Chairman Richard O’Toole, said: “The first half has been a period of significant consolidation for the company following the acquisitions of Fusion and the Osprey assets. Sterling has just entered its most active drilling period to date, which will see the company participate in over 20 wells in Africa and the Gulf of Mexico over the next year. “Although smaller than the African upside potential, the Gulf of Mexico drilling programme is expected to add incremental production and cashflow at lower risk. We continue to believe that balancing this risk and reward is key to the future success of Sterling. “Oil and gas prices have been high for some time and it is tempting to believe that we will stay in this new price environment at least for the next few years. Our view is more cautious so we are focusing on extracting maximum value from our existing assets through organic growth (drilling) rather than looking at new production acquisitions, which may become cheaper in the not too distant future. “Of course there are always exceptions and we are constantly on the lookout for value adding deals.” |
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