Green Dragon Gas first-half loss narrows as revenues rise

17th Aug 2015 11:16

(ShareCast News) - Green Dragon Gas reported a smaller pre-tax loss for the first half as revenues increased, production ramped up and gas pricing remained strong.The China-focused gas producer said its net loss from continuing operations fell by 98% to $1.4m from $69.3 in the first half of last year, as revenue rose 8% to $16.8m thanks to an increase in piped natural gas and compressed natural gas sales.Capital expenditure increased to $19.4m from $7.8m but the company said this was in line with its objective to focus on infrastructure investment and drilling to deliver increased production.Green Dragon said gas pricing remained unaffected by any Chinese market volatility or potential future Chinese yuan devaluation.Chairman and founder Randeep S Grewal said: "We are pleased to announce another set of strong financial results from Green Dragon Gas, following the gradual ramp-up in our production and sales through the first six months of 2015."In addition, we have continued to benefit from a uniquely strong pricing position environment in the context of the on-going volatility in the sector, due to our strategic position in the high demand Chinese gas market."The company said its programme of 30 new gas wells was on track, with a further 15 wells planned for the second half of the year. It added that it's on track to achieve a 12 billion cubic feet production target for the year.At 1132 BST, Green Dragon shares were up 0.9% at 295p.