Loyz Energy swings into the black with Q1 FY2015 profit of US$541,000

ENERGY firm Loyz Energy turned in a net profit of US$541,000 for Q1 FY2015, compared to a loss of US$1.63 million for the corresponding quarter a year ago.

Revenue more than tripled to US$6.87 million, up from US$2 million previously, due to the group's share of crude oil from its Thailand concessions. Thailand continued to perform well despite lower average oil prices vis-a-vis Q4 FY2014, it said. The group owns 20 per cent of three concessions in the Phetchabun Basin, north of Bangkok.

Earnings per share worked out to 0.13 US cent, versus a loss per share of 0.47 US cent previously.

During the quarter under review, the cost of sales declined 30 per cent to US$1.82 million which contributed to a gross profit of US$5.05 million, versus a gross loss of US$601,000 previously.

"Development wells are being drilled in our Thailand fields currently," Loyz said, adding that the group is cautiously optimistic that production will climb from the current average of 4,700 barrels of oil per day (bopd) to 5,000 bopd in the next few months and continue to grow to 7,000 bopd in the medium term. This is expected to help offset lower oil prices.

The average oil price for the quarter stood at US$89.97 per barrel.

"Besides developing our existing oil and gas properties, the group is also seeking opportunities to acquire producing oil and gas properties with a view to enhancing shareholder value," it went on to say. "The group also intends to explore various fund raising options in the coming months to fund its commitments, working capital and potential acquisitions."