Gulf Keystone boosts revenue, narrows loss

Independent oil and gas exploration and production company Gulf Keystone Petroleum announced its results for the six months to 30 June on Thursday, with revenues of $102.1m recognised during the period, up significantly from $30.1m in the first half of 2015.

The London-listed firm said that figure included $51.2m recognised in relation to a part of the previously unrecognised revenue arrears, and $50.9m for first half liftings.

Cash spend on capital items was $15.7m, compared to $52.2m, and gross operating costs per barrel were $4.00, down from $5.00 in the first half of last year.

Gross profit for the period was $25.8m, due to recognition of revenue relating to prior years' liftings, although there was an impairment of $40.0m following the relinquishment of the Sheikh Adi and Ber Bahr blocks.

Gulf Keystone posted a loss after tax for the period of $59.9m, narrowing from $77.7m.

“Upon completion of the restructuring we will be able to effectively relaunch Gulf Keystone,” said CEO Jón Ferrier.

“We will benefit from an enhanced balance sheet, a well understood field which continues to perform above expectations and a clear path to significantly increasing production and growing value over time.

“With a regular payment schedule, Gulf Keystone will be in the strongest position it has been in for a number of years and faces the future with renewed confidence.”

At 1132 BST, shares in Gulf Keystone Petroleum were up 3.22% at 2.08p.