LONDON (dpa-AFX) - SOCO International plc (SIA.L) on Wednesday reported profit before tax of $80.1 million for the year to 31 December 2018, up from $22.7 million in the prior year.
The Group's profit for the year was $27.7 million or 8.1 cents, compared to loss of $157.3 million or 47.7 cents a year ago.
Revenue for the year grew to $175.1 million from $156.2 million in the previous year.
Looking ahead to fisal 2019, the company maintained its production guidance at 6,500 boepd net to 7,500 boepd net.
The company's board has proposed a final dividend for 2018 of 5.5 pence per share, which amounts to approximately $28.9 million, assuming that the SOCO EBT waives its entitlement to dividends in respect of its holding of Ordinary Shares.
The proposed final dividend, which represents an increase of 5 percent, is subject to approval by shareholders at the Annual General Meeting on 23 May 2019.
In response to speculation in the market relating to SOCO's potential interest in a combination with Ophir Energy plc (OPHR.L), SOCO confirmed that it does not intend to make an offer for Ophir.
SOCO noted that for some time, it believed that a combination with Ophir would create significant and long-term value for shareholders in both companies. Accordingly, SOCO tabled a formal proposal to Ophir's Board on 17 January 2019, regarding an all-share combination of SOCO and Ophir. However, the Board of Ophir unanimously rejected SOCO's proposal on 22 January 2019.
'In light of Ophir's subsequent announcement of a recommended all cash offer of 55 pence from PT Medco Energi Global PTE Ltd ('Medco'), SOCO believes that a share-based combination with Ophir would currently be challenging to execute and so would represent an unacceptable level of risk for SOCO shareholders,' SOCO said.
SOCO added that it remains committed to its strategy of shareholder value creation through sustainable cash returns to shareholders and growth of the business.
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