- Russia-focused Volga Gas posted a rise in annual profit as higher sales volumes boosted revenue.

Pre-tax profit for the year through December jumped to $10.6m, up from $0.2m on-year.

Sales volumes rose 6% to 4,956 barrels of oil equivalent per day, helping revenue rise 24% to $45.9m.

The company completed the construction of a new unit at the Dobrinskoye gas plant to capture liquid petroleum gases in April.

LPG production commenced in May 2018 and had built steadily from that point.

Between January and March 2019, group production averaged 6,117 boepd, in line with management's plans.

For the coming months, the company said it expected average daily production of gas, condensate and LPG to be in the region of 5,400 boepd, due to planned maintenance downtime, leading to group production of around 5,900 boepd.

'We are pleased to have delivered on the two key aims; improvement in operational reliability of the Redox gas sweetening and construction of the LPG extraction plant,' chief executive Andrey Zozulya said.

'These have already delivered a higher level of production that is expected be sustainable in the medium to long term.'

'The improvement in profitability achieved in 2018 exceeded management's expectations and, in a stable oil price environment, would be sustainable.'

'The board is very pleased to be recommending further dividend payments to shareholders.'

'We remain excited about the group's assets and remain positive about the potential for production from our fields and the potential to discover additional fields in our licences.'

'We will also continue to seek value accretive opportunities, beyond our existing licence areas, building a focused exploration and production business.'

At 8:24am: [LON:VGAS] Volga Gas PLC share price was +2.5p at 52p

Story provided by