Mart Resources Drops as Net Income Declines 89%
Mart Resources Inc. (MMT), the Calgary- based oil explorer with Nigerian production, fell the most in almost seven months after second-quarter profit declined on pipeline disruptions and lower output.
The shares dropped 12 percent to C$1.48 at the close in Toronto, the biggest decline since Jan. 31.
Second-quarter net income fell 89 percent to C$2.3 million ($2.33 million) from C$20.8 million a year earlier, the company said today in a statement. The company’s share of production from the Umusadege project in Nigeria fell 23 percent to 4,491 barrels a day. The field was shut for nine days during the quarter because of pipeline disruptions, well testing and maintenance.
About 18 percent of the oil sent along the pipeline serving the field in Nigeria’s Delta state was lost, Mart said, calling the rate “anomalous.” Mart and its partners in the project are in talks with Royal Dutch Shell Plc (RDSA) about building an alternative export pipeline.
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