KrisEnergy Q3 loss widens amid drop in oil prices
Singapore
UPSTREAM oil and gas firm KrisEnergy, which is undergoing a financial restructuring, saw its net loss deepen to US$16.7 million for its third quarter ended Sept 30, from a loss of US$11 million a year ago.
Loss per share stood at 1.1 US cents for the quarter, compared with a loss per share of 0.7 cent a year ago.
Revenue for Q3 almost halved to US$22.9 million, down 41.6 per cent from US$39.2 million a year ago, due to lower average realised selling prices for oil and liquids. This was partially offset by higher average realised selling prices for gas in Thailand, KrisEnergy said on Tuesday.
Overall, the group's average realised oil and liquids sale price fell by 19.3 per cent to US$57.15 per barrel for the third quarter, and dipped 10.4 per cent to US$60.10 per barrel for the nine months.
Revenue for the nine months to Sept 30 fell 28.2 per cent to US$91.5 million, dragged down by lower oil prices and sale volumes.
No dividend was declared for the quarter, the same as a year ago.
The net loss resulted in a deepening of the group's capital deficiency position, which stood at US$63.3 million as at Sept 30 compared with US$46.6 million as at June 30.
Total debt recognised on its balance sheet was US$487.7 million as at Sept 30, while gearing was 114.9 per cent.
In August, KrisEnergy applied to start a court-supervised debt restructuring while also seeking court protection from creditors' legal action.
Its three-month debt moratorium lasts till Nov 14.
The company said in October that it is not in a position to redeem any of its notes, comprising the S$130 million, 4 per cent senior unsecured notes due 2022, S$200 million 4 per cent senior unsecured notes due 2023, and S$139.5 million senior secured zero-coupon notes due 2024.
Its other debts comprise a US$200 million revolving credit facility (RCF) with DBS Bank maturing on June 30, 2020, a term loan from HSBC, and a term loan from Standard Chartered Bank, Singapore Branch (SCB).
The amount drawn on the DBS RCF totalled US$186 million as at Sept 30.
Under the HSBC and SCB term loans, the firm said in August that it would temporarily stop repaying the principal and interest, which amounted to US$4.6 million due on Aug 21. It also paused the repayment of interest on the due-2023 notes totalling US$4.1 million due on Aug 22.
Shares of KrisEnergy have been suspended since Aug 14.
