JKX reports net revenues of USD 78.6 mln in 1H09

JKX Oil & Gas released its 1H09 interim financial and operation results this morning. The company reported total revenues of USD 78.6 mln, down 33% yoy as a result of a 30% fall in oil production and significant decline in world oil prices. JKX’s operating profit was USD 44.5 mln, down 45.9% yoy, and profit after tax was USD 31.8 mln, down 49% yoy. JKX’s gas revenues amounted to USD 53.6 mln (vs. USD 40.8 mln in 1H08) and oil revenues to USD 24.2 mln (vs. 75.1 mln in 1H08). JKX reported progress on its exploration programs, and said its current production exceeds 13,000 boepd, an increase of about 30% above the average for the period (10,191 boepd). Andriy Gerus: The company’s financial and operational results are in general in line with our expectations. In our view, improvements are likely in 2H09 due to growing oil and gas prices.