Salamander Energy Plc (SMDR), a U.K. oil explorer active in Asia, said that profit margins will rise along with production this year.
The London-based company said that operating cash flow per barrel of output climbed to $40.22 last year compared with $28.56 in 2011. Profit before tax plunged to $10.8 million from $112.6 million a year earlier after the company sold older, less profitable producing assets.
“Our cash margins will grow again,” Chief Executive Officer James Menzies said in a telephone interview. “We also see a rise in production, so cash generation is growing considerably.”
Salamander is focusing on three fields in Thailand and Indonesia as it bolsters production and steps up exploration. The company reduced debt and raised cash in a share sale last year to fund its program.
The company said production will rise to between 12,500 and 15,500 barrels of oil equivalent a day from 10,800 barrels in 2012. The shares rose 2.5 percent to 204.3 pence in London.
To contact the reporter on this story: Brian Swint in London at email@example.com