Bankers Petroleum profit falls on higher taxes

TIRANA, May 14 – Canada’s Bankers Petroleum reported a lower first-quarter profit, hurt by a rise in tax, and said its output has been flat for the last few months.
The company is focused on developing Patos-Marinza onshore oilfield in Albania and has a deal with state-owned Albpetrol to take over and re-activate 120-130 wells each year.
Production remained flat due to operational challenges associated with mature heavy oilfield development including interference from old well bores, sand production, and water disposal capacity, the company said in a statement.
Bankers Petroleum struggled with production shortfalls last year as well.
Net income for the first quarter fell 31 percent to $7.8 million, or 3.1 cents a share, from $11.2 million, or 4.4 cents a share last year. Income tax expense rose to $17.6 million from $9.5 million. Oil revenue rose 41 percent to C$102.7 million.
Royalties in favor of the Albanian Government and related entities, totalled $19.1 million for the quarter, up from $13.8 million for the first quarter of 2011. Total royalties for 2011 were $64 million, representing 19% of revenue.
The company realized a 25 percent higher price for its oil at $84.96 in the first quarter. Sales volume increased 12 percent to 13,279 barrels of oil per day.