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Loyz Energy returns to the black in Q1 on absence of other charges
LOYZ Energy reported on Friday that it has returned to the black for its fiscal first quarter ended Sept 30, 2016, given the absence of other charges seen a year ago.
The oil-related company generated a net profit of US$262,000 for Q1, compared to a net loss of US$902,000 a year ago. Revenue fell 40 per cent to US$2.4 million, from US$4 million over the same period. The lower revenue was due to the drop in crude oil price and lower oil production from its oil fields in Thailand.
Other charges decreased by US$1 million mainly due to the absence of foreign exchange loss and write-off of inventories relating to the group's operations in India recorded a year ago.
Cash and cash equivalents decreased by US$0.7 million, from US$2.5 million on June 30, 2016, to US$1.8 million by end-September 2016.
Loyz reported a negative working capital of US$8.7 million on Sept 30, 2016, compared to US$10.4 million on June 30, 2016.
"Notwithstanding this, the directors of the company are of the opinion that the group and company are able to meet their obligations as and when they fall due,'' Loyz assured.
The group is working towards a new drilling campaign, which is expected to commence in January 2017. The campaign aims to add on to production, reserves and value of its fields.
Loyz said it would continue to keep its operating costs low, while targeting to increase production and revenue, and seek strategic options to enhance shareholders' value.