Circle Oil profits more than double to €20m

LIMERICK-based Circle Oil said profits more than doubled thanks to a production boost in Egypt and a rise in oil prices.

AIM-listed Circle said net profit soared 147pc to $25.6m (€20.3m) last year. Sales rose 31pc to $57.95m in the same period.

“Significantly, our continued drilling success in both Egypt and Moroccohas resulted in increased daily production and this is reflected in our profitability for the year,” chief executive Chris Green said.

Circle buys oil wells that are close to production, which means it is able to turn a profit far more quickly than many other exploration companies. This year, it hopes to develop more fields in Egypt, improve efficiency at a field in Morocco and drill two wells in Tunisia.

Circle also predicted that improvements to gas pipelines would boost revenues. It is also looking for a partner so that it can drill in Oman.

Investec analyst Keith Morris said the 2011 results show “steady” progress. “Revenue and profits for 2011 increased strongly and came in above our expectations, mainly due to higher realised oil and gas prices,” he added.

– Thomas Molloy