UK shale explorer IGas Energy annual results meet forecasts

25th Jun 2014 15:39

Annual results from UK onshore hydrocarbon group IGas Energy broadly met analysts' forecasts on Wednesday as the company reported growth in both revenues and operating profits in the year to March 31st.Revenues increased to £75.9m during the 12-month period, from £68.3m the year before, helped by an increase in production to 1m barrels of oil equivalent, from 0.9m.Earnings before interest, tax, depreciation and amortisation increased to £34.3m from £32.3m.However, on an underlying basis, which excludes movements on oil price derivates and other costs, underlying operating profits fell to £20.3m, from £22.1m 12 months before.Net cash from operating activities declined to £25.2m by the end of the year, from £28.9 previously.Chief Executive Andrew Austin said it was "another successful year" for the IGas as it continues its strategy of "becoming the leading onshore independent company developing and producing discovered hydrocarbons in Britain".Since the end of the financial year, the firm proposed the acquisition of Australia-listed firm Dart Energy for A$211.5m (£117.1m) to create the UK's largest shale gas explorer.Austin said: "The transaction will further strengthen our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain."Analysts at Westhouse Securities said that IGas's results were "all broadly in line with our and consensus estimates".The broker, which maintained a 'buy' rating on the stock, said: "The IGas investment case is all about a progressive derisking of UK shale, which has very strong government backing, with the ultimate endgame a probable takeover by one of the global majors."The stock was down 0.2% at 127.74p by 15:18.BC