Rex returns to profitability in H1 as revenue clocks 420% growth

OIL exploration and production company Rex International reported net profit of US$23.9 million for the first half of this year, versus a net loss of about US$21 million in the corresponding period last year.

Revenue for the six months ended June 30 surged to US$75.8 million, which is more than five times that of the year-ago US$14.6 million. This came mainly from Rex's 86.4 per cent-owned subsidiary Masirah Oil's share of the sale of crude oil from the Yumna Field after the Oman government's take.

Dan Broström, executive chairman of Rex International (Rex) 5WH, said: "The group's revenue in the first half of 2021 was buoyed by the doubling of oil liftings in Oman to six from the same period last year, and an increase in the average realised oil price sold from an unprecedented low of US$23 per barrel in H1 2020 to US$62 per barrel in H1 2021."

He added that high initial startup costs in 2020 and exploration drilling costs in Oman for 2021 "are now behind" Rex.

Earnings per share amounted to 1.84 US cents for the first half, versus a loss per share of 1.61 cents in H1 2020.

No interim dividend was recommended, "as the group recently turned profitable from sale of crude oil" in H1 2021, Rex said.

Mr Broström noted that the group aims to continue its first-half performance, by having one lifting per month from Oman in the second half of this year.

Separately, Rex disclosed on Wednesday that Ivory Coast's national oil company had filed a claim against Masirah Oil and Rex's fully-owned subsidiary Rex Oman.

In its results filing on Thursday, Rex reiterated that it is of the view that the claims and allegations against its two units are "frivolous, baseless and unmeritorious".

Its shares closed unchanged at 23.5 Singapore cents on Thursday, with a traded volume of 18.9 million, before the announcement of the results.

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