KrisEnergy’s net losses soar to $33.8m

Blame it on jittery global oil markets.

Upstream oil and gas company KrisEnergy Limited admitted trading conditions were hellish in 2Q16 as company losses rose to S$33.8 million (US$25.2 million) as against a profit of S$11.7 million (US$8.7 million) in 2Q15. Net losses in the first half of the year soared S$60.6 million (US$45.2 million) compared to a profit of S$74.9 million (US$55.9 million) in the same period a year ago.

KrisEnergy blamed the jittery oil market and higher production that led to an increase in the group’s non-cash depreciation, depletion and amortisation expenses, among other reasons for the stress on the company’s quarterly figures.

“Realised oil price in 1H16 was US$26.33/bbl, a drop of 54.2% from a year ago. The 2Q2016 realised oil price improved to US$32.90/bbl from US$20.85/bbl in 1Q2016 during which benchmark oil prices hit multiple-year lows below US$30/bbl,” KrisEnergy said in its release.

Meanwhile, KrisEnergy reported that the average realised gas price from the Bangora gas field in Block 9 onshore Bangladesh was constant throughout the period at US$2.32 per thousand cubic feet (mcf). In Thailand, however, realised gas price associated with the B8/32 and B9A fields reduced in 2Q16 to US$3.33/mcf from US$4.11/mcf in 1Q16 following the six-month adjustment to the formula price.