Tulsa-based Apco Argentina Inc. today announced that for the three and six-month periods ended June 30, 2007, the company generated unaudited net income of $8.3 million and $16 million. This represents a 20 and 17 percent decrease, respectively, compared with net income of $10.3 million and $19.3 million for the comparable periods in 2006.
The $2 million decrease in net income for the second quarter of 2007 is due primarily to lower average oil sales prices, lower equity income from Argentine investments, and higher costs and expenses.
The increase in costs and expenses during the quarter is attributable to greater operating expense, higher selling and administrative expense, increased depreciation, depletion and amortization, and greater Argentine taxes other than income. The company has experienced a continuation of the trend of increasing field-operating expense including labor and oil-field service costs.
Operating revenues were relatively flat compared to the second quarter of 2006, improving by $188,000 as increases in oil and natural gas sales volumes were nearly offset by lower oil sales prices. During the second quarter of 2007, oil, gas and plant product prices averaged $42.75 per barrel, $1.52 per thousand cubic feet and $458.93 per metric ton, compared with $45.09 per barrel, $1.26 per mcf and $406.59 per metric ton for the comparable period in 2006.