RH Petrogas on Sunday said it expects to record a higher loss for the second quarter ended June 30, 2020, compared with the loss reported a year ago.

 

The independent upstream oil and gas company also expects to record a loss for the first half of 2020, compared with a profit for the corresponding half-year period in 2019. The profit guidance follows a preliminary review of the unaudited consolidated financial results of the group for Q2 and H1 2020.

 

The expected Q2 loss is mainly due to lower revenue recognised by the group as a result of " significantly lower" realised oil prices which averaged around US$28 per barrel for the quarter, down about 59 per cent from US$69 per barrel a year ago.

 

The oil markets experienced unprecedented volatility during the quarter, with Brent crude oil prices " crashing to a 21-year low" of about US$9 per barrel in late April before recovering to around S$43 per barrel towards late Jane, RH Petrogas said.

 

That said, the group expects to generate positive earnings before interest, tax, depreciation, amortisation, exploration expenses, impairment and other non-recurring items, as well as positive net cash flow from operations for H1 2020.

 

RH Petrogas will announce its unaudited consolidated financial results for the period ended June 30, 2020, on or before Aug 14, 2020.