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Rex International back in the black with US$23.6m Q2 earnings

LICENSING sales gave a boost to Catalist-listed Rex International Holding's second-quarter results, as the oilfield services firm swung into the black with a net profit of US$23.6 million for the three months ended June 30, from a net loss of US$2.7 million a year ago. 

Earnings per share (EPS) for the quarter came in at 1.83 US cents, versus a loss per share (LPS) of 0.21 US cent last year.

Shares in Rex International closed at 6.2 Singapore cents on Aug 8, up 3.3 per cent, or 0.2 cent. 

Nonetheless, the group did not record any service revenue for Q2 this year, as compared to a revenue of US$90,000 in the preceding year, from technical services rendered to external clients by its subsidiary Rex Technology Management. 

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No dividend has been declared, as the group has just recently turned profitable on the completion of sales of interests in licences to a third party, Rex International said. 

Other income surged to US$29.4 million for the quarter, up from US$90,000 last year, mainly due to a gain from sales of interests in licences to a third party. 

For the six months ended June 30, net profit came in at US$22.6 million, from a net loss of US$4.8 million last year. This translated to EPS of 1.75 US cents for the half-year period, versus a LPS of 0.37 US cent for the year-ago period. 

Looking ahead, the group noted that it is actively monitoring the continued volatility of oil prices, as it forges ahead with its aim to achieve first oil in Oman by the end of this year. 

"In Norway, drilling on the Shrek prospect in the new farm-in Norwegian Sea licences is expected to start in second half of FY2019, while marketing efforts for Rex Virtual Drilling are being stepped up," the company added.