Strong oil and gas prices drive Fletcher Energy to record result

By PAULA OLIVER

Fletcher Energy, in the midst of a takeover battle involving oil giant Shell and a little known local consortium, this morning revealed a record result for the six months to December 31, 2000.

Energy made $308 million in the half-year, on the back of strong global oil and gas prices.

The result included a large chunk of unusual items - a $50 million gain on the sale of Capstone Turbines shares, a $25 million gain on the sale of NZ Refining shares, and a $161 million taxation benefit.

Without unusual items, Energy returned half-year earnings of $99 million, up 62 per cent on the previous corresponding period.

Chief executive Greg Gailey said the company's staff had been operating in uncertain conditions during the period, as the division's future was being decided.

Energy's Pohokura discovery estimates had been significantly upgraded, although other exploration activities had not been so positive. The Tuihi well had been suspended because results had not proven it to be economically viable.

Gas production rose 2.8 per cent, and overall production on an oil equivalent basis rose 1.6 per cent.

* More details in tomorrow's Herald