11/03/2016 - 13:22

Production boosts Empire revenue

11/03/2016 - 13:22

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Domestic gas producer Empire Oil & Gas has reported a 13 per cent lift in half-year revenue on the back of higher plant utilisation, and remained in the black despite the falling oil price.

Production boosts Empire revenue
Empire chief executive Ken Aitken.

Domestic gas producer Empire Oil & Gas has reported a 13 per cent lift in half-year revenue on the back of higher plant utilisation, and remained in the black despite the falling oil price.

Pre-tax profit more than tripled to $1.7 million, with the company saying higher production offset lower condensate prices.

But net profit after tax was down 80 per cent, to $1.2 million, after the company last year had a one-off deferred tax expense of $5.2 million.

Empire operates the Red Gully gas processing facility, which contributes about 1 per cent of the state’s domestic gas usage.

Much of that is in an offtake deal with Alcoa.

Business News reported last year that the facility had has issues with slug catching and other technical problems, which had kept it producing below capacity.

In the six months to December, however, it ran at a 9.4 terajoules per day, close to nameplate capacity of 10tj/d.

Empire chief executive officer Ken Aitken said that his team had focused on improving operations in the low oil price environment.

Shares in Empire were up more than 10 per cent to 38 cents each at the time of writing.

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