Loyz Energy Limited (Loyz Energy, and together with its subsidiaries, the Group), a fast-growing Singapore-based upstream energy group announced Thursday that it had recorded a decrease of 42.0 percent in revenue to $4.0 million for the three months financial period ended Sept. 30, 2015 (1Q FY2016), as compared to $6.9 million in the corresponding period (1Q FY2015). The lower revenue stemmed from the sharp fall in oil price from $89.97 a barrel in 1Q FY2015 to $41.53 a barrel in 1Q FY2016 despite an increase of 16,415 barrels or 20.8 percent in the Group’s share of oil production from its Thailand oilfield concession, from 78,932 barrels in 1Q FY2015 to 95,347 barrels in 1Q1 FY2016.
The Group slashed its operating expenses by 32.0 percent year-on-year from $1.9 million in 1Q FY2015 to $1.3 million in 1Q FY2016, as it focused on its Thailand operations, which have also managed to reduce operating costs. During 1Q FY2016, the Group recorded one-off, non cash charges of $1.0 million mainly relating to its Indian operations, which are being disposed. These include write off of inventories and foreign exchange losses. Excluding these charges, the Group would have recorded profit before tax of $1.0 million from ongoing operations.
For 1Q FY2016, the Group reversed its net profit attributable to shareholders in 1Q FY2015 of $0.5 million to a net loss attributable to shareholders of $0.9 million.
Commenting on the results, Managing Director of Loyz Energy, Adrian Lee said, “The Group has been streamlining and consolidating its operations amid the depressed oil price to focus on its producing assets. The increased Thailand production mitigated the more than 50 percent plunge in oil price over the same period last year. It is encouraging that Loyz Energy continues to be operationally profitable despite the crude oil price drop.”
Loyz Energy will continue to review its financial position and exercise prudent and effective cost management while concurrently seeking collaboration and acquisition opportunities for producing oil and gas assets to enhance the Group’s profitability and shareholder value.
“We are improving efficiency and investing in our Thailand concessions with six new wells commencing drilling in November 2015. A second program of four more wells is planned for the second half of 2016. We are on track to profitability, raise production and reserves levels. This will increase the value of our business and position us well for any upturn in crude prices. We believe that Loyz Energy will be poised to benefit from any upturn in the crude oil price.” Lee added.
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