Apco Oil and Gas International Inc. (NASDAQ:APAGF) today announced net income attributable to Apco of $31.7 million in 2011, or $1.08 per share, compared with net income of $25.8 million, or $0.88 cents per share in 2010.
The improvement in 2011 net income is primarily due to higher average sales prices, greater equity income from Argentine investment and lower exploration expense compared with 2010. These favorable variances were partially offset by higher non-exploration costs and operating expenses.
Total operating revenues increased by $17 million compared with 2010. Higher average sales prices accounted for $14.3 million of the increase during 2011. A 1 percent sales volume increase – which resulted in 2.5 million barrels of oil equivalent (BOE) for the year applicable to Apco’s consolidated interests – also contributed to higher operating revenues.
Total costs and operating expenses for the year increased by $14.7 million, primarily from higher production costs including depreciation, depletion and amortization expense and taxes other than income.Higher production costs during 2011 were partially offset by lower exploration expenses. The decrease in exploration expense reflects lower exploration activity including the absence of significant seismic acquisition investments made in Colombia during 2010. Apco also experienced higher equity income from its 40.72 percent interest in Petrolera Entre Lomas S.A. (Petrolera). For 2011, the benefits of higher average sales prices and greater sales volumes contributed to an increase of $4.3 million in equity income from Argentine investment compared with 2010. Sales volumes applicable to Apco’s equity interest in Petrolera were 2.2 million BOE in 2011 – an increase of 7 percent. First-Quarter 2012 Dividend Apco’s board of directors has approved a regular quarterly dividend of 2 cents per share on the company's shares. The dividend is payable on April 26, 2012, to shareholders of record at the close of business on April 16, 2012.