For the first time since 2014 British company Regal Petroleum plc (part of Smart Energy Group, owns gas producing assets in Poltava and Kharkiv region) received 2.3 mln USD net profit. For reference, the company ended 2016 with 1.3 mln USD negative return. It is stated in financial report of Regal Petroleum plc, posted on London Stock Exchange website.
Company’s revenue over reporting period went up by almost 37% to 35.1 mln USD versus 25.7 mln USD in 2016. Last year the company paid Ukraine 16.6 mln USD of taxes (royalty, VAT, excise tax, corporate income tax, etc.) and also invested 6.3 mln USD into development.
It was possible to achieve good financial results by increase of production volume (in particular, average daily production volume went up by 65% by the end of 2017 and amounted to 2800 boepd) and stabilization of hydrocarbon prices. Whereas, following liberalization processes of Ukrainian gas market and decrease of production rent rates contributed to it.
“We are planning to keep ramping up production volumes in the future, which should be stimulated by implementation of decreased rent rates on new wells drilling starting from January 1st of this year, as well as adoption of de-regulatory laws by the Parliament of Ukraine. Also, we are waiting for transparent auctions for new plots to kick in”, - noted CEO of Regal Petroleum plc Sergiy Glazunov (CEO of Smart Energy Group).
As a reminder, Regal Petroleum plc is a public company that was founded in 1996. Its shares are quoted on AIM London Stock Exchange. It operates in Ukraine through the Representative Office Regal Petroleum Corporation Limited (Poltava region) and LLC Prom-Energo Product (Kharkiv region) that own special licenses for production of hydrocarbons. All companies are part of Smart Energy Group.
Finished product of Regal Petroleum plc is natural gas, gas condensate and LPG.
Smart Energy is a part of Smart-Holding in charge of implementing exploration projects, commercial development of the hydrocarbon deposits and alternative energy initiatives.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkov region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkov regions (Prom-Energo Product).