Green Dragon revenues up 51.2%
Date:
10 April 2012
Green Dragon Gas posts full year revenues of $75.2m for the year to the end of December – 51.2% up on last time.
But operating losses rose to $19.3m – up from $6.9m a year ago.
Green Dragon – one of the largest independent companies involved in the production of coal bed methane gas and the distribution and sale of gas in China – raised $50m through an equity placement at a share price of $14.9.
It also repaid a total of $37.9m from Sinoenergy, representing a 13% return (annualised) on an initial capital investment of $34.7m.
Chairman and chief executive Randeep Grewal said: “2011 was a transitional year with continued growth in each of the group’s businesses, all focusing on achieving the 18 Bcf gas production rate target.
“The company successfully distributed a dividend in specie to its shareholders creating an independent drilling service company – Greka Drilling Ltd with a listing on AIM.
“GDL continues to specialise in unconventional gas drilling and is growing exponentially while providing the company with LiFaBriC (lined faulted brittle coals) wells, as planned.
“The GDL business, launched in November 2007 by the company and developed over four years, has achieved a market capitalisation of over $225m.
“Our upstream business has a dual focus.
“Transition management teams at our GSS block focus on production with a significant emphasis on gas delivery infrastructure while concurrently maintaining exploration programs at the other five blocks.
“We expect the exploration programs to yield sufficient results by the end of 2012 to enable another block to move into the production phase as we progress into 2013.
“GSS, the focused gas production block, remains our primary objective and the organisation is committed to our 18 Bcf target.
“Upon achieving this target, the forecast cash flow will provide comfortable headroom to support the continued growth objectives of the company.”
At 9:05am: (LON:GDG) share price was -0.12p at 8.63p
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