KrisEnergy posts 3Q profit on gains
KrisEnergy, an independent exploration and production company focused on Southeast Asia, has seen a profitable third quarter of 2015 on gains from assets transfer.
According to KrisEnergy’s 3Q 2015 report, the company’s net profit for the quarter amounted to $9.4 million, as opposed to a $10 million loss in the corresponding period last year.
The company explained that its earnings for the quarter were boosted by a $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.
The increased production helped maintain positive cash flow even though revenue was buffeted by the continuing downward trend in oil prices.
Namely, the company’s revenue for the third quarter 2015 fell 30.1% to $12.7 million, versus $18.2 million in 3Q 2014.
KrisEnergy’s EBITDAX, the globally accepted benchmark of profitability for the upstream oil and gas industry, remained positive at $1.6 million in 3Q 2015.
The company’s third quarter 2015 production moved up almost 20%, when compared to the same period last year, as new Thai oil fields ramped up, and its working interest volumes exceed 13,500 boepd by end October 2015.
KrisEnergy’s Chief Executive Officer, Keith Cameron, said that in line with its peers, the company sought to cut costs across operations to reflect the negative impact of the depressed oil market on revenues and the prolonged uncertain outlook.
Cameron further stated: “General and administrative expenses have been reduced by 10.4% and finance costs are down by 3.8% – the benefit from an earlier restructuring of debt. These measures and other prudent steps to control costs, optimise the balance sheet and tap more favourable sources of funding have enabled us to continue to focus on bringing near-term development projects into production.”
Offshore Energy Today Staff