MELROSE RESOURCES (MRS).

Investors Chronicle, April, 2007

Shares in Melrose Resources stumbled as the company's 2006 results revealed that it merely broke even after tax. One-off costs relating to the acquisition of erstwhile Egyptian partner Merlon Resources and increased tax charges negated a 17 per cent increase in operating profit, to US$37.5m. Still, adjusted cash profits were up 16 per cent to US$88.6m, allowing the full-year dividend to grow from 1.5p to 1.75p.

Importantly, the company remains well on track with production and exploration across its Egyptian assets, which executive chairman Robert Adair describes as "the jewel in our crown". Oil, as opposed to gas revenues, will mark a step-change in Melrose's earnings when the West Dikirnis oilfield enters production towards the year-end - and, in the next...

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