Kris Energy (SGX:SK3) has showed it continued to benefit from a ramp-up in production in the Gulf of Thailand.
A financial results statement, for the twelve months to December 31, revealed a 27% rise in production to 9,692 barrels oil equivalent per day (boepd), and that output had grown to 19,000 boepd by the year’s end.
The ramp-up, which saw two fields come online in the year, saw the company’s reserves base increase some 49% to 105.9mln barrels oil equivalent.
“Operationally, 2015 was a seminal year for KrisEnergy,” said Keith Cameron, chief executive.
“The group fulfilled its targets, completing two new oil developments in the Gulf of Thailand while demonstrating technical excellence with highly successful exploration drilling, which resulted in an approved production licence for a future oil development.”
Cameron highlighted that the operational successes, and improved reserve and production base, underpin the group’s mission "to become a sustainable and best-in-class exploration and production operator in Asia.”
“These significant accomplishments, however, were overshadowed by factors out of our control and the related uncertainties throughout 2015, which continue to drive down oil markets in 2016 and sap investor confidence.”
Kris reported earnings (EBITDAX) of $37mln, some 22% higher than the prior year and the company said cash generation was up nearly nine-fold.
But, the impact of lower crude pricing was evident as it reported a $49mln net loss for the year, largely due to impairments against its asset base and write-downs for it crude inventory.
Capital spending was reduced by 78% to $51mln.
Cameron told investors that the company will continue to make adjustments to its spending profile in order to manage liquidity.
