Catalist-listed Loyz Energy, an upstream energy group, reported a net profit attributable to owners of US$541,000 (S$697,200) for the first quarter ended 30 September compared to a net attributable loss of US$1.63 million in the corresponding period a year ago.
Earning per share was 13 US cents for the quarter compared to a loss of 47 US cents for the year-ago period.
The positive results were driven by Loyz' Thai assets, where the production of 78,932 barrels of crude oil contributed to the group revenue of US$6.9 million and EBITDAX (earnings before interest, taxation, depreciation, amortisation and exploratory expenses) of US$4.5 million. The Group owns 20 per cent of three concessions in Thailand which lie within the Phetchabun Basin located north of Bangkok.
Said managing director Adrian Lee: "Now that we have successfully bagged this producing concession, we will be stepping up its daily production quickly in the near term. This will further beef up our cashflow and lift earnings, and allow Loyz Energy to re-invest the proceeds into our development and exploration assets."
The Group's concessions in Thailand was producing at 4,300 barrels of oil per day (bpd) in August 2014, which then rose to 4,700 bpd after the successful drilling of a development well a month ago. Production flow is already underway in the development well, currently the well is flowing at 350 bpd. Two to three more wells will be drilled soon, which are expected to raise production rate at its Thai concessions to 5,000 bpd by the next few months. The Group targets to step up production to 7,000 bpd over the medium term.
Commenting on the outlook, Mr Lee said: "The Group remains confident about our future, even as crude oil prices have weakened recently. Oil will always remain a major and critical hydrocarbon source to meet the increasing energy demand of growing populations worldwide and rising affluence in emerging economies. As such, we expect the market to come into balance with oil price finding support over the medium term.
"For the Group, we expect the higher production at our Thai concessions to offset the softer oil prices and boost our EBITDAX in FY15."