An improvement in oil prices has helped Soco International increase revenue and narrow its losses, even as production volumes continued to slide.
There's no mention of an interim dividend here, indicating management is concentrating on conserving capital as it firms up new development opportunities in Vietnam and Africa.
The failure and subsequent deferral of a planned appraisal well at Te Giac Trang marks a setback in efforts to keep cash flowing from a core producing asset. And with new exploration ventures still in the early planning stages, Soco's outlook remains challenging.
President and CEO Ed Story praised the company's tenacity and financial strength, which have helped it endure “low oil prices and harsh macro-economics, whilst delivering sustained cash returns to shareholders”. 2017 capital expenditure of $35m in Vietnam and $15m in Africa should be fully funded from existing cash resources.
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