Singapore-based oil and gas company KrisEnergy reduced its net loss year over year while experiencing a 12.2% drop in revenues as lower sales volumes were only partially offset by higher oil and gas prices.
Based on KrisEnergy’s financial statements on Thursday, the company booked a net loss of $25.6 million in this year’s third quarter versus a loss of $31.6 million in the same period of 2016.
KrisEnergy’s production volume dropped by 15 percent during 3Q 2017 amounting to 12,662 boepd versus 14,895 boepd in the same period of 2016.
According to KrisEnergy, this decrease was primarily due to lower production from the Wassana oil field in the Gulf of Thailand where the company holds an 89% working interest.
During this year’s third quarter, the company’s revenues decreased by 12.2% totaling $39 million compared to $44.4 million in the prior-year period.
Higher average realized selling price for both crude oil and liquids and natural gas partially countered the decrease in sales volume. The average realized oil and liquids sales price in 3Q 2017 increased 33.8% to $47.65/bbl compared to $35.61/bbl in 3Q 2016.
The average realized gas sales price achieved from B8/32 & B9A in 3Q 2017 was $4.08/mcf, 23.3% higher than a year ago (3Q 2016: $3.31/mcf).
Kelvin Tang, who took over as Chief Executive Officer on September 1, 2017, commented: “We are heartened by the steady improving outlook for oil prices with benchmark Brent crude hovering close to two-year highs above $60/bbl so far in the penultimate month of 2017. However, we remain cautious on oil price volatility, investor sentiment and access to capital. Cost control and liquidity management remain the priority and we are continuing discussions to farm-out specific assets where we have a majority working interest.”
Offshore Energy Today Staff