SacOil: Soft oil prices force change in strategy

JSE-LISTED oil and gas company SacOil has moved to consolidate its existing assets in Egypt after abandoning its joint venture with Nigeria’s Nigdel United Oil Company as a result of low oil prices. The company said yesterday that it would focus its strategies on proven areas for growth to balance and rationalise its portfolio assets during the current financial year. SacOil chief executive Thabo Kgogo said the change in strategy was critical to position the company for sustainable growth in the future. “We have a renewed strategy, which will see our portfolio of assets being balanced with much increased exposure to income producing resources,” Kgogo said. “I am very pleased with the progress we have made in the last year.” The firm posted a R277 million loss in profits in its annual result statement for the year to February 2015 compared with the R9.5m in the previous year. SacOil reported a basic loss per share of 8.54 cents drop from a basic earnings per share of 1.37 cents during the comparative period last year. However, Kgogo said the focus on developing the activities of its Lagia oil field in Sinai, Egypt, would further enhance production. Sacoil shares fell 4 percent to 24c yesterday. – Sechaba ka’Nkosi