Shares of oil player Rex International fall 35.4% on auditor’s going concern doubts

[SINGAPORE] Rex International lost more than a third of its value on Wednesday (Mar 25), a day after independent auditors at Deloitte cast significant doubt on the group’s ability to continue as a going concern.

The oil player said that a material uncertainty warning was included in the audited financial statements for the year ended Dec 31, 2025, following large financial shortfalls across the mainboard-listed oil exploratory firm.

Shares of the counter slid 35.4 per cent or S$0.046 to close at S$0.084 on Wednesday.

The group reported a capital deficiency of US$94.4 million and a net current liability position of US$81.3 million as at Dec 31, 2025.

The deficits were primarily driven by its subsidiary, Lime Petroleum Holding (LPH), which alone recorded a net loss of US$128.3 million for 2025 and had a capital deficit of US$152.8 million.

Rex International’s net loss for the year was US$152.7 million. The group has a market capitalisation of about S$225 million.

SEE ALSO

Oil prices drop on prospect of Middle East ceasefire easing supply disruption

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The group has total loans and borrowings of US$248.7 million; its financial woes are heavily tied to LPH’s debt load, which includes senior secured bonds with a carrying amount of US$224.9 million and US$23.4 million in senior secured bonds issued by another wholly owned subsidiary, Jasmine Energy.

To manage its obligations, LPH appointed financial and legal advisers in February to execute a comprehensive debt restructuring. This followed a January agreement, through which bondholders allowed LPH to defer US$5 million in interest payments and temporarily suspended a minimum liquidity covenant until Mar 31. In addition, on Mar 16, a summons was issued to bondholders to facilitate potential expedited interim liquidity funding.

Rex International’s board and management said that it “may play a part” in LPH’s turnaround by providing capital, stability and operational expertise. It added that it has already put forward a non-binding proposed plan to LPH’s advisers. Despite the auditor’s warning, the board maintained that preparing the financial statements on a going concern basis “remains appropriate”, citing its belief that a successful debt restructuring will enable LPH to “continue operations for the foreseeable future”.