Elf Gabon reported net income of $39.6 million for the first half of 1999, equivalent to net income for the same period in 1998 ($39.7 million).
Net income remained stable despite a 16% drop in sales (due essentially to lower volumes of oil sold), thanks to a 19% percent reduction in expenses. The price for Gabonese crude oil averaged $12.59 a barel, with little change from the first-half average for 1998 ($12.39 a barel).
Capital expenditures
Capital expenditures fell to $15.6 million in the first half of 1999, down from $28.3 million for first-half 1998. The main areas of investment in the first half of 1999 were:
- Exploration: continuing studies on leasehold acreage,
- Development: completion of work on phase II of Rabi (increment A), which has slowed the rate of decline in production on this Shell Gabon-operated field. In addition, the development of the Atora field, operated by Elf Gabon, is scheduled to begin in the second half of 1999.
Production
At June 30, 1999, Elf Gabon's estimated share of crude oil production, net of royalties, averaged 117,000 barrels per day compared with 140,000 barrels per day for the first half of 1998, down 16%. This decrease is due to the rapid decline in production (-27%) on the Shell Gabon-operated Rabi field, and to a more measured decline on the part operated by Elf Gabon (-7%).
Principal financial results for the first half of 1999
|
(in millions of US dollars) |
1sthalf 1999 |
1st half 1998 |
For the year 1998 |
| Sales |
280.7 |
334.0 |
602.7 |
| Funds generated from operations |
100.6 |
115.5 |
204.3 |
| Capital expenditures |
15.6 |
28.3 |
57.1 |
| - Exploration |
3.1 |
5.1 |
8.6 |
| - Development |
11.9 |
23.0 |
47.6 |
| - General |
0.6 |
0.2 |
0.9 |
| Net income |
39.6 |
39.7 |
49.2 | |
