African-focused oil explorer Soco International saw its shares slump seven percent today after earnings missed estimates.
Profits at the firm, which has operations in Vietnam and the Congo, fell to $104.1 million, down from $207 million a year earlier and short of the $218.3 million estimate of 12 analysts surveyed by Bloomberg.
Soco returned more than $200 million to shareholders in the fourth quarter and said it will recommend a further cash return in 2014. The shares have climbed 19 percent in a year.
“The stock has been trading at a premium to the sector for a while,” said Thomas Martin, an analyst at Canaccord Genuity Ltd. in London. “Maybe people were looking for something to justify that.”
The company said revenue was $608.1 million last year, down from $621.6 million in 2012. Earnings before interest, tax, depreciation, amortization and exploration write-offs declined to $472.9 million from $496 million.
“The company is pleased that we have been able to create value for shareholders from cash returns and a 100 percent success ratio in our Vietnam and operated drilling programs,” said chief executive Ed Story.
“Whilst revenues are slightly down,” the “future looks extremely bright.”
Recommended for you
