KrisEnergy swings to net profit for Q3 on gains from asset transfers

SINGAPORE - Upstream oil & gas company KrisEnergy posted a net profit of US$9.4 million (S$13.3 million) for its third quarter ended Sept 30, from a net loss of US$10 million a year ago, on gains from asset transfers.

Revenue fell 30.1 per cent to US$12.7 million, primarily due to the continued downward pressure on global oil prices, which resulted in a 54 per cent plunge in the company's average realised oil and liquids sales price to US$48.48 a barrel.

But earnings for the quarter were boosted by a US$26 million gain from the transfer of working interests to KrisEnergy for Block 105-110/04 offshore Vietnam and the Tanjung Aru production sharing contract in Indonesia. Both transfers were non-cash transactions and were recorded as gains on transfer.

The company said its working interest production of oil and gas jumped almost 20 per cent in the quarter to average 8,847 barrels of oil equivalent (boepd) from a year earlier as two new oil fields in the Gulf of Thailand ramped up output, with the group's volumes exceeding 13,500 boepd by the end of October.

KrisEnergy said the increased production helped maintain positive cash flow even though revenue was buffeted by the continuing downward trend in oil prices.

Looking ahead, the company said oil price volatility is expected to remain high in the near to medium terms due to uncertainty over the global economic outlook and concerns over supply-demand dynamics.