SOCO International's interim profit plunges on oil prices slump

Oil and gas explorer SOCO International saw its interim pre-tax profit plunge as its revenue was more than halved on the back of a slump in oil prices.

In the six months to the end of June, the group saw its profit before tax plummet from $174.7m to $32.7m, while revenue fell from $246.4m to $116.6m.

In a statement released on Wednesday, the group, which operates in Vietnam and Africa, said production averages 11,856 barrels of oil equivalent per day in the period.

SOCO has lifted its output guidance and it now expects its annual average production to be between 11,000 and 12,000 bpd compared with an initial estimate of between 10,500 and 12,000 bpd.

The group has reiterated its capital expenditure guidance for the year at approximately $90m, with $70m allocated to its Vietnam operations and $20m to its Africa-based business, adding work at the Te Giac Trang filed in Vietnam was ahead of schedule.

“Despite a challenging oil price environment, significant capital expenditure to bring the H5 development to first oil and the $51m in dividends paid to shareholders during the first half of the year, SOCO remains in a strong financial position,” said group chief executive ED Story.

SOCO shares were down 1.44% to 154.25p at 1104 BST on Wednesday.