9 Sep 2010 12:52

Urals Energy in the black in H1

MOSCOW. Sept 9 (Interfax) - Cyprus-based holding company Urals Energy was a profit-maker in H1, turning $1.6 million in first-half net profits versus net losses of $440 million a year earlier, the company reported.

Sales revenue for the reporting period contracted 23% to $11.69 million, as company oil sales dropped more than 60% to 210,385 barrels after the transfer of Urals Energy's main production asset - CJSC Dulisma - to Sberbank of Russia for debts.

Operating profits came to $1.6 million versus losses of $126.9 million in H1 2009. This was due to company cost-cutting efforts and rising oil prices, Urals Energy said.

EBITDA was $79,000 versus a negative EBITDA of $2.621 million one year prior.

As of June 30, Urals Energy's long-term debts to oil-trader Petraco Oil Company stood at $25.8 million. The company had $2.4 million on its books.

Average daily oil product dropped by half to 2,000 barrels.

Extraction by Urals Energy subsidiary CJSC ArcticNeft rose 6% to 121,605 barrels of oil, while production at CJSC Petrosakh fell 23% to 255,655 barrels.

Urals Energy sold off assets in the Republic of Komi in 2008-2009, and in H2 2009 the company gave over to Sberbank 35.3% of LLC Taas-Yurakh Neftegazdobycha and 99% of CJSC Dulisma to offset unpaid loans.

The company owns 97.2% of CJSC Petrosakh. This past May, the company transferred its hydrocarbon assets - Petrosakh shares and 100% of the stock in ArcticNeft - into security with Petraco as debt payment.