- Assets grew in first three quarters despite slump in oil sales
- Reported record EBITDA growth during the year
- Agreement in Cyprus positions company at crossroads of Middle East-to-Europe shipping
As the economies of some African nations show signs of new growth resulting from the ongoing production of their oil resources (http://dtn.fm/osPj9), Petrogress, Inc. (OTC: PGAS) is building on its years of networking with trading partners along the continent’s west coast and in the Mediterranean region while it expands its operations into Europe and the U.S. to create a diversified revenue stream in the oil and gas shipping industries.
Petrogress, Inc. began 2017 with a vision of increasing monthly deliveries of crude oil through the purchase of additional tankers to complement its fleet of five transports from Greece to western Africa, as well as the completion of oil exploration and refinery negotiations in Ghana. At the end of the third quarter, the company reported that it was negotiating the purchase of two Aframaxes tankers and a 55 percent interest in a shuttle tanker. Despite a recent slump in African crude oil sales (http://dtn.fm/5H7Gk) and the comparable effect on the company’s sales volume revenues and gross profits, Petrogress reported a rise in profitability from 3.82 percent to 13.14 percent with a record adjusted report of earnings before interest, taxation, depreciation and amortization (EBITDA) of just over $2 million at nine months’ end. Total assets grew during the period from $9.79 million to $14.03 million.
“We are generating strong operational and financial results in spite to the adverse oil market pricing… We are seeing strong indications of continued growth and remain confident in our ability to drive profitability and increase volumes across our platform to deliver enhanced shareholders value,” Petrogress President and CEO Christos P. Traios stated in reporting the results (http://dtn.fm/R6tEU).
“We put several pieces into place preparing for activities planned over the next several quarters,” Traios added in November when the quarterly Form 10-Q was filed. “We’ve pre-paid anticipated expenses and pre-positioned personnel and assets that we’ll use over the next six to twelve months building our business in Cypriot ports, pursuing important, government-sponsored joint ventures in Libya, and finalizing our offshore production and lease arrangements in Ghana.”
The formation in early November of PG Cypyard & Offshore Service Terminal Ltd. (“Cypyard”) through Petrogress’s wholly owned subsidiary Petrogress Int’l, LLC, provided the company with the means to conclude negotiations with the Cyprus Ports Authority for an operations and management pact in Hellenic Cyprus that includes a long-term lease with renewal options covering all in-place port facilities, such as floating dock and dry dock areas with cranes and scaffolding, construction and repair workshops and storage and the necessary on-site administrative office space.
Traios characterized existing facilities in the Port of Limassol as “in fairly good shape” and ready to operate with a minimal investment of time and money (http://dtn.fm/MxbI5). Cyprus and its confirmed energy reserves are located at the crossroads of sea lanes and potential pipeline routes linking Europe and the Middle East.
Petrogress, like other corporations in the oft-volatile energy industry, continues to make adjustments to its operations to accommodate changes in the world’s political and economic landscapes. Economic analysts predict that the price of oil will continue to rise in the coming years (http://dtn.fm/J5rYr), and the recent appointment of two industry experts to the Petrogress advisory board is expected to help the company capitalize on growth opportunities as it develops a comprehensive lobbying and government outreach program to further its business plans in the United States, European Union and African continent.
For more information, visit the company’s website at www.PetrogressInc.com
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