KrisEnergy posts Q1 loss of US$18.19 million

KRISENERGY slipped into the red in the first quarter despite higher sales of cargoes lifted from its oilfields.

The oil and gas company, in which Keppel Corporation holds a significant equity stake, posted a loss after tax of US$18.19 million for the three months ended March 31, 2018, compared to a profit after tax of US$55.72 million for a year-ago period.

This marked the third consecutive year of reported losses for KrisEnergy, the company said in a separate notice issued on the Singapore Exchange.

Loss per share for Q1 was 1.2 US cents, compared to earnings per share of 3.7 US cents for the corresponding three months in FY2017.

First quarter sales was higher at US$42.51 million, up from US$31.80 million as higher crude sales offset declined gas sales but the improved topline performance was offset by increased operating costs.

Operating costs almost doubled to US$24.49 million primarily a result of two cargo liftings during Q1 FY2018 versus one in Q1 FY2017.

Other operating expenses amounted to US$5.83 million in Q1 FY18, compared to an income of US$77.52 million in Q1 FY17 after recognising net foreign exchange losses and net fair value loss on financial instruments.

Finance costs almost halved to US$11.23 million in Q1 FY18 partly due to one-off financial restructuring costs of US$7.3 million recognised in Q1 FY17.

In spite of the recovery in oil and gas prices, KrisEnergy said that it continues to tightly manage its liquidity position and take all measures to reduce costs and curtail discretionary expenditure.

"Managing liquidity while progressing development projects main the primary challenge," the listed company said.

Its net cash from operating activities for Q1 was US$3.78 million, a fraction of some US$16.42 million for a year-ago period.

Cash and bank balances as at March 31, 2018, stood at US$52.66 million, compared to US$57.96 million a year ago.

KrisEnergy closed at 10.2 Singapore cents, down 0.1 Singapore cent.