As these first-half figures reveal, rising oil production yet again failed to translate into rising profits for Russia-focused producer Exillon Energy. The group upped output by 48 per cent in the period to roughly 11,538 barrels of oil per day (bpd), but still ended up in the red, amassing a net loss of $1.7m (£1.1m) compared with profits of $5.7m in the corresponding period a year earlier. That's despite a rise in the average price of oil received from $107 a barrel to $113 this year. And it follows a $10m net loss for full year 2011, where Exillon ramped up production by 90 per cent in another period of high oil prices.
Higher operating costs, export duties, transportation services, administrative expenses and interest on debt all played their part affecting the bottom line. But the fall in net profits also came from the absence of foreign exchange gains booked the previous year, as well as a write-off of the upfront costs of doubling the group's debt facility to $100m.