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CWX Global posts Q3 net profit of US$211,000 on income tax credit

CATALIST-LISTED investment firm CWX Global, which has a minority stake in Thai oil concessions, on Friday reported a massive jump in third-quarter earnings on income tax credit.

Net profit rose to US$211,000 for the three months to March 31, up from US$32,000 the year before, according to unaudited results.

CWX attributed the manifold growth to an income tax credit of US$531,000 - reversing a previous expense of US$374,000 - and cited earlier "over-provision of income tax" for its Thai operations.

The surge in earnings came even as revenue fell 43 per cent year-on-year to US$1.06 million on a drop in its share of oil production from its 20 per cent-owned Thai concession.

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Contributions from the group's Hong Kong lending business were stable, while the share of losses narrowed for fledgling commodity trading associate FIT Global.

Earnings per share was 0.005 US cent, compared with 0.001 US cent previously, while net asset value dipped to 1.58 US cents a share, against 1.6 US cents as at June 30, 2018.

"The group's investment business and FIT's trading business are expected to grow gradually due to the current weak global sentiment," CWX said in its outlook statement, while adding that it is "working on raising oil production volume and revenue".

It noted that the Thailand oilfield joint ventures in the Phetchabun Basin will review plans for another drilling campaign in the second half of 2019 to raise production.

No dividend was declared, unchanged from the year before, with the board saying that it thought it "appropriate to conserve cash for the group's operations".

CWX chief executive Jeffrey Pang added in a statement: "Oil price recovery over the last few quarters helped ease our load, as we continue to work the oilfields to overcome the natural depletion of the existing producing wells.

"We are appreciative of our shareholders' patience and support over the years. We will continue to seek opportunities to strengthen our earnings base and deliver value to our shareholders."

CWX closed lower by 33.33 per cent to 0.2 Singapore cent on Friday before the results were released.