RH Petrogas Limited slipped into the red for the quarter ended Sept 30, recording a net loss attributable to shareholders of US$3.24 million compared with a profit of US$3.13 million a year earlier. Management linked the reversal mainly to softer oil prices and lower lifting volumes, which cut top-line contribution despite tighter cost controls.
Revenue declined 13.8 per cent year-on-year (YoY) to US$19.47 million as the average realised oil price fell 14.1 per cent to US$67 a barrel and crude liftings eased. Basic loss per share came in at 0.39 US cent, versus earnings of 0.37 US cent in the prior-year period. No interim dividend was declared.
The group’s only operating segment – oil and gas – registered a pre-tax loss of US$0.87 million against a pre-tax profit of US$6.98 million previously. Gross profit retreated 13.0 per cent to US$6.72 million, offsetting a 14.3 per cent reduction in cost of sales. Other expenses ballooned to US$7.64 million from US$0.16 million after the group wrote off US$7.51 million of exploration and evaluation assets tied to a 3D seismic survey in the Salawati block.
For the nine months to Sept 30, revenue slid 17.0 per cent to US$58.74 million, while net profit attributable to shareholders dropped 73.9 per cent to US$2.73 million. Segment pre-tax earnings fell by half to US$12.45 million, mirroring the pullback in crude prices and volumes. Basic earnings per share for the nine-month period shrank to 0.33 US cent from 1.25 US cents.
Cash flow from operations remained positive at US$18.76 million for the nine-month period, supporting cash and bank balances of US$66.81 million as at Sept 30. Capital expenditure reached US$7.34 million, primarily for development work at the Kepala Burung and Salawati production-sharing contracts (PSCs).
Looking ahead, the company highlighted elevated geopolitical tensions and an uncertain macroeconomic backdrop but noted that Brent crude has been trading around US$69 per barrel. RH Petrogas plans to spud two exploration wells in the Kepala Burung PSC in the fourth quarter and continues to work toward fulfilling the remaining US$40.2 million of firm exploration commitments due by 2028 across its Indonesian blocks. Management said it will focus on cost discipline and timely execution of planned work programmes to navigate the cautious industry outlook.
Comments