Sweden’s Tethys Oil posted a fall in profits despite output hitting a record high for every month of the first quarter.

The company posted a first quarter profit of Skr57.7 million ($8.8 million), down from the Skr104.6 million profit booked during the same period last year.

Hitting the recent quarter results were higher expenses along with an increase in depletion, depreciation and amortisation costs.

The 2013 first quarter result also benefited from a Skr64.8 million gain from a bonus related to the farm-out of Block 3 and 4 in Oman to Mitsui in 2010.

These factors offset the rise in net sales from oil and gas  during the first quarter to a record high of Skr194.7 million, up from the from Skr146.2 million generated during the same period last year.

Helping lift revenue was an increase in year-on-year production from 368,481 barrels to 608,582 barrels, which also helped offset a slight dip in the average selling price per barrel from $107.63 to $106.56.

“Average daily production for the quarter of 6762 barrels of oil per day was the highest quarterly production number in the company’s history,” Tethys managing director Magnus Nordin said.

“Our net sales of Skr195 million are also record high, but the sales could have been higher. Timing issues in sales have again resulted in higher production than sales volumes and we leave the quarter in an underlifted position of over 43,000 barrels.”