Oil and gas company KrisEnergy Ltd. reported on Thursday that its net loss widened for the third quarter of this year by about 180 per cent to US$10.03 million (S$12.94 million) from US$3.54 million in the same period last year on lower oil prices and higher operating costs and expenses.
EBITDAX - earnings before interest, tax, depreciation, amortisation and exploration expenses - a measure of core profitability for the upstream oil and gas industry, declined in the third quarter to US$5.5 million due to increases in operating costs and corporate general and administrative expenses.
Operating costs before depreciation, depletion and amortisation rose to US$5.8 million from US$2.6 million a year earlier due to higher group production as well as a one-off adjustment associated with the decommissioning of the Kambuna gas field in Indonesia, which ceased operations in July 2013.
The company said oil and gas production rose almost fourfold in the third quarter from a year earlier, averaging 7,403 barrels of oil equivalent per day (boepd) as output from the Bangora gas field in Block 9, onshore Bangladesh, continued to exceed expectations.
It said revenue jumped 33.4 per cent from the year-earlier period to US$18.2 million, with strong production volumes helping to counter the impact of the global decline in oil prices experienced during the quarter.
Keith Cameron, chief executive officer, commented: "Despite external pressures on oil prices, we are pleased to have exceeded internal expectations on production to support revenues. We believe the balance in our portfolio of an oil and gas production mix as well as a combination of royalty/tax and production sharing contract fiscal regimes, mitigates to some extent our exposure to commodity price volatility."
"We have made solid progress on our two development projects in the Gulf of Thailand and remain on track for first oil in 2015. We are tremendously excited to be operating Cambodia Block A and we are engaging our partners and the authorities to reach agreement for the Apsara development concept as soon as possible.
"There has been an associated ramp up in capital expenditure for our various developments and we are well funded from our two bond issuances this year, which have cut our cost of debt in half to just below 5.0 per cent. Our debt restructuring is now complete and although the cost of the exercise has impacted our bottom line, we will reap the longer-term benefits through associated lower rates of interest."