SINGAPORE (Yosefardi) – KrisEnergy Ltd., an independent upstream oil and gas company, posted revenues decline of 47.0% in the first six months 2015 (1H2015) from a year earlier, due to volatility in global oil markets.
EBITDAX, the globally accepted benchmark of profitability for the upstream oil and gas industry, jumped 47.3% to US$31.0 million in 1H 2015 from US$21.0 million in the first half 2014 (1H 2014) driven largely by strategic asset divestment and acquisition transactions.
The Company recorded a net profit after tax of US$55.8 million from a US$23.8 million loss a year earlier.
The tumble in global oil markets led to a 47.2% decline in the 1H 2015 average sales price for crude oil and liquids to an average US$57.46 per barrel (bbl) from US$108.81/bbl in 1H 2014.
Amid the uncertain outlook for oil markets, management has focused on optimising the balance sheet, prudent expansion and cost containment, which have resulted in significant benefits.
These include the gain from the divestment of marine facilities related to the Wassana development and the recognition of provisional negative goodwill amounting to US$45.1 million in connection with our acquisition of a 41.6666% working interest in Block A Aceh, onshore Sumatra, Indonesia, the transaction for which was completed in January, and reflects KrisEnergy’s continued ability to acquire accretive assets below reserve valuations.