JKX Earnings Up On Ukraine Output Gain

UK-registered independent JKX Oil & Gas recorded a growth in earnings in the first half, as higher output more than offset a slump in gas prices.

Company revenues came to $45.3mn, up from $42.4mn in the first half of 2018, while profit reached $2.2mn, up from $1.9mn. These gains were achieved thanks to a 16% climb in production to 10,132 boe/day, as JKX continued on its five-year drilling and workover plan launched last year.

“Given the significantly lower gas sales price in Ukraine, and the fact that the level of gas held in inventory has substantially increased in the first half of the year, our higher production volumes have been critical in delivering this higher revenue,” JKX’s board said in a statement on July 31.

Capital expenditure totalled $10.8mn in the six-month period, more than double the year-ago figure of $4.6mn, while operating cash flow dipped to $12.2mn from $15.7mn in the first half of 2018.

JKX’s board said it expected the group’s rental fee dispute with Ukrainian tax authorities to be resolved later this year.