Roxi Petroleum swings to profit in 2014 on exceptionals

Oil and gas explorer Roxi Petroleum swung to an annual pre-tax profit in 2014, after reversing an impairment charge it booked in the previous year.

The Kazakhstan-focused group posted a $20.1m pretax profit in 2014, compared with a $9m loss in 2013 on the back of the reversal of a $25m impairment charge.

Annual revenue rose 67.2% year-on-year to $1.6m, while administrative expenses fell 9.3% to $4.9m and finance costs dropped to $0.96m from $4.3m.

The London-listed group said its 2015 drilling programme will be fully funded by the proceeds from the sale of its interest in the Galaz project and the income from oil sales, adding its "sole objective" in 2015 is to achieve a production rate of 4,000 barrels per day from its BNG project.

"Provided our deep wells at BNG start producing consistently and despite the fall in the oil price Roxi management expect income to rise during 2015, as oil is produced during the testing phase of the deep wells at BNG," the group said in a statement on Tuesday.

The oil explorer added that while expenses and costs are not expected to fall this year, depending on the performances of the BNG wells, the company will be in a "materially stronger position at the end of 2015".

Roxi shares were down 8.57% to 16.00p at 09:45 on Tuesday.