Krisenergy narrows Q2 loss on improved oil prices

UPSTREAM oil and gas (O&G) outfit Krisenergy narrowed its second quarter loss after tax on turning in a gross profit and posting higher revenue on improved realised oil prices.

For the three months to June 30, the O&G firm in which Keppel Corp holds a significant stake, posted a loss after tax of US$33.11 million, less than half of a corresponding loss of US$81.82 million reported a year-ago period.

Loss per share was 2.2 US cents for the second quarter, down from 5.5 US cents for Q2 FY17.

Revenue for Q2 was US$45.73 million, higher compared to US$36.67 million for the same period last year.

Crude oil sales surged to US$42.42 million from US$32.47 million as average realised oil and liquids sales price rose 51.4 per cent to US$69.82 per barrel, up year-on-year from US$46.11 per barrel. 

This more than offset a dip in gas sales to US$3.30 million, down from US$4.21 million.

Consequently, the firm turned in a Q2 gross profit of US$1.50 million, reversing from a gross loss of US$7.59 million.

First-half loss after tax almost doubled to US$51.30 million.

Higher and more stable oil prices have helped bolster the firm's bottomline and topline performances.  But Krisenergy also cautioned against inflationary pressures on oilfield services costs as market conditions improve.  "The management remains vigilant on potential pressures on the group's capital expenditure," it said.

Krisenergy closed at 9.2 Singapore cents on Tuesday before the release of its quarterly results, up 0.2 Singapore cent.