Despite recording unfavourable half-year metrics, frontier oil & gas play Soco International (SIA) confirmed that it is to pay-out $121m (£73m) – or 22p a share - via a B/C in specie share scheme that gives investors the tax-efficient option of receiving the pay-out as either income or capital (ex-entitlement on 23 September). Analysts had been expecting a $100m payment in line with management’s 50 per cent of free cash flow formula.
Soco’s interim revenues and net profits were both down by around a quarter to $246m and $79.8m respectively, although this was in line with expectations. Likewise with production which averaged 13,960 barrels of oil equivalent per day (boepd) during the period. Despite operational issues delaying planned expansion work on Soco’s producing fields in Vietnam, net production guidance for 2014 remains at 14,000 to 15,000 boepd.
