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Linc Energy posts A$58.3m loss for Q1 of FY2016
SINGAPORE-LISTED oil and gas company Linc Energy Ltd has posted a net loss of A$58.3 million (S$59 million) in its first quarter of FY2016 as a result of the sale of Carmichael Royalty and low oil and gas prices.
This translates to loss per share of 9.47 Australian cents, compared to earnings per share of 18 Australian cents a year ago.
Revenue for the three months ended Sept 30 was 31.1 per cent lower compared to the corresponding period a year ago, at A$20.4 million.
This was despite an increase in US oil and gas net sales volumes, as realised price per barrel was halved from a year ago.
The lower revenue also came on the back of a decline in revenue from Clean Energy consulting due to a refinement, among other things.
Cost of sales rose 21.9 per cent to A$33.4 million, primarily due to increased depletion resulting from updated reserves report issued at financial year end.
This was slightly offset by reduced workover expenses as a result of improved maintenance procedures and implementation of cost control initiatives, Linc Energy said.
Net foreign exchange gains rose by A$2.3 million for the quarter due to movements in exchange rates, led by the strengthening of the US dollar against the Australian dollar.
Finance expenses also went up in Q1 by A$2.7 million due to unfavourable exchange rate movements.
In its outlook, the group said the oil market is likely to remain volatile due to the uncertain supply and demand outlook and lingering global growth and geo-political concerns, which are likely to affect its performance in FY2016.
"With oil prices forecasted to track at suppressed levels into the near future, the company continues to implement measures to improve the liquidity position of the business as well as de-risk the company from external economic variables in order to achieve a long term sustainable financial position."