Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Melrose Resources opens new fields in Bulgaria
Date: 17/08/2010
Source: Financial Times
Melrose Resources opens new fields in Bulgaria

The opening of new fields in Bulgaria will boost production by 7,500 barrels of oil equivalent per day, Melrose Resources said, as interim pre-tax profits at the Edinburgh-based oil and gas group jumped by more than a third.

Melrose, which has operations in Egypt, Bulgaria, Romania and Turkey, said it produced an average of 40,000 boe/d in the first half of this year, driven by its offshore Egyptian assets.

The group expects to receive a boost when the first of two Bulgarian fields begins production in September, and the income will help pay down the company’s $459m (£294m) of net debt.

For the six months to June 30, pre-tax profit rose 32 per cent to $26.2m – up from $19.8m in the same period last year – on sales that rose from $97.6m to $110m.

Diluted earnings per share rose from 1.7p to 3.5p, while the interim dividend jumps from 1.6p to 3.1p.

Dave Thomas, chief executive, said the Bulgarian fields were crucial to increasing the company’s cash flow.

“Cash from operations will grow steeply. As soon as these Bulgarian developments come on, we’re on a strong growth curve – assuming a $70 barrel of oil, [we’re expecting] $240m in cash flow from our operations in 2013,” said Mr Thomas.

Melrose plans to maintain current production levels in Egypt, bring two Romanian fields onstream in two years and divest assets in North America.

Debt concerns have shadowed the company, which is more highly geared than many of its competitors. According to the company, debt has been cut by $15m in the past six months and Mr Thomas said money raised from the US asset sale would go towards paying down debt.

Nick Copeman, an oil analyst at Oriel Securities, said the results were in line with expectations and he does not expect Melrose’s high level of debt to become a problem.

“Production was slightly better than expected and the second half will be driven by Bulgaria. As for the net debt, Melrose sells fixed-price gas and if the oil price stays buoyant I don’t see it as an issue,” Mr Copeman said.

Melrose was in the news last week when the High Court ruled that Robert Adair, chairman, breached a contract by failing to put more money into Advantage Capital’s buy-out fund. Mr Adair, who owns more than half of Melrose, faces a hearing to determine damages, with Advantage Capital seeking tens of millions of pounds in lost fees and expected carried interest – a profit share – from the fund.

Last week Mr Adair said: “This issue will be determined in due course at trial ... I have yet to file my defence and counterclaim.”

Topic: Investments

Featured District
Invest Bulgaria Charts
Private Sector External Debt of Bulgaria
Private Sector External Debt of Bulgaria

Current and Capital Account of Bulgaria
Current and Capital Account of Bulgaria

See all charts
Did You Know?
Rents in Sofia
Rents in Sofia
Rent for a 3 BR apartment in Sofia is about 250 Euros ... More

Yambol is a town standing on the banks of the Tounda River. It dates back to Roman times when it was called Dianapolis. The town boasts Roman baths, a medieval fortress, the Saint George Church of 1737, the Saint Nicholas the Miracle Maker Church, the Roofed Market (Bezistena) of the 16th Century, Churshoum Pazar and the Eski Mosque.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2021 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.

Лимузини под наем Electric and Hybrid Modules Repair SEO оптимизация Bulgaria Translation Bulgarian Agriculture
Bulgarian Textile Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.

Our Featured Members