Rex posts H1 net loss of US$21m after oil production in Oman

REX International on Thursday posted a net loss of US$21 million for the half-year ended June 30, 2020, compared with a net profit of US$22.6 million a year ago.

The group had in February achieved its first oil production from the Yumna Field in Oman, leading to revenue of US$14.57 million from the sale of crude oil. Rex then recorded corresponding production and operating expenses of US$15.9 million, as well as depletion of oil and gas properties of US$10 million.

Gross loss was US$12.4 million, compared with gross loss of US$325,000 a year ago.

Rex said production costs were higher at the startup phase as initial production was from the Foresight Driller IX drilling rig. In May, production was resumed from a more cost-effective mobile offshore production unit.

Net profit from a year ago was mainly due to other income of US$30.3 million. This arose from the sale of interests in licences to a third party.

Shares in Rex ended trading on Thursday at 18.1 Singapore cents, down 0.1 cent or 0.55 per cent.