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Pharos Energy PLC on Wednesday posted a first-half earnings improvement on the back of higher realised oil prices.
The Egypt and Vietnam-focused oil and gas production company's pretax profit trebled to to $98.2 million in the six months to June 30, from $26.7 million a year earlier.
Revenue more than doubled to $112.3 million from the $59.2 million reported a year prior. Most of this increase derived from Pharos's business in Vietnam, where revenue increased 84% to $103.8 million from $56.3 million.
Pharos says its realised oil price during was $109.47 a barrel in the first half, up 69% from $64.76 a year earlier.
Production in Vietnam averaged 5,861 barrels of oil equivalent per day, in line with the previous guidance of 5,000-6,000 boepd. Drilling at the first of two TGT offshore development wells is due to commence.
In Egypt production was 2,101 boepd, down on the 3,718 bopd recorded last year. A first exploration commitment well at North Beni Suef is planned for the fourth quarter of 2022.
The company is recommending that regular dividend payments restart in 2023, subject to shareholder approval.
Chief Executive Officer Jann Brown said: ‘Our results for this half year underscore the cash generation potential of our portfolio of assets, with operating cash flow of $27.6m achieved. In Vietnam, further development drilling on both TGT and CNV is due to commence imminently, with the rig on location and preparing to spud. In Egypt, a rig on long-term contract has been secured and is due to arrive in Q4 to continue the development drilling programme. These activities are set to add to production levels and cash flow in H2 and beyond.’
Shares in Pharos were trading 4.8% higher at 24.42 pence each in London on Wednesday afternoon.
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