S'pore KrisEnergy Cuts Loss, Remains Cautious

Southeast Asia-focused KrisEnergy has reduced its net loss for the year 2017 to $139.2mn from $237.1mn a year ago thanks to higher realised oil and gas prices, it said March 1.  

A $120.7mn charge relating to non-cash impairment and write down during 2017 mainly owing to Block A Aceh cessation was the main reason for the loss in 2017, it said. KrisEnergy farmed out a 21.7% working interest in the Block A Aceh production sharing contract in April 2017 and reduced its holding to 15%. In Q4 2017, it was further decided to cease participation in the Block A Aceh gas project to preserve cash flow and reduce the company’s risk exposure.

The company realised a 59% increase in the annual average realised crude oil price to $49.26/b which bolstered its revenue to $140.7mn in 2017, relatively flat to year-ago levels of $142.8mn.

KrisEnergy’s witnessed 21% year on year decrease in its oil and gas production to 12,745 boe/d. The production gap from 16,136 boe/d in the 2016, was primarily owing to natural decline and mechanical issues associated with earlier deviated wells at the Wassana oil field in G10/48 coupled with the deferment of infill drilling in the Gulf of Thailand field to the fourth quarter of 2017 from an original schedule of the first half of the year, it said.

“Although we welcomed the steady improvement in oil prices throughout 2017, the markets’ gyrations in the first two months of 2018 continue to test confidence in the upstream sector and management’s ability to plan and commit to capital expenditure. In this uncertain environment, our emphasis will remain on safeguarding our balance sheet through cost control, focusing capital expenditure towards committed expenditures whilst at the same time, continuing to maximise oil and gas production,”CEO Kelvin Tang said.