OIL exploration and production company Rex International : 5WH +3.09% on Wednesday (Mar 1) posted a net loss of US$5.8 million for the second half of 2022, versus a net profit of US$43.2 million in the corresponding period in 2021.

 

Revenue for the period from the sale of crude oil was down 14 per cent to US$70.8 million from US$82.7 million, 

 

The group has proposed a final dividend of S$0.005 per share, unchanged from the final dividend in 2021. Rex International is targeting to pay out the dividend in May, assuming shareholders approve the dividend payout at the company&rsquo s upcoming annual general meeting that will be convened on or before Apr 30. 

 

For the full year, Rex International posted a loss of US$1 million versus a net profit of US$67.2 million in 2021. Revenue for the financial year from crude oil sales was up 7 per cent to US$170.3 million. 

 

The group attributed the higher revenue from crude oil sales for the full year to contributions from the Yumna Field (after the Oman government take), and the Brage Field in Norway. The acquisition of Brage Field was completed on Dec 31, 2021. 

 

There was also an increase in the average realised oil price sold from US$67 per barrel in FY2021 to US$88 per barrel in FY2022 for the sale of crude oil from the Yumna Field in Oman.

 

The increase in revenue was, however, partially offset by a decrease in the volume of oil lifted and sold from the Yumna Field in FY2022, due to production stoppages for the planned major change-outs and upgrades made to the production facilities from February 2022 to April 2022. 

 

There were also unforeseen operational issues in June and November 2022 in both Oman and Norway, said Rex International. 

 

Production and operating expenses for FY2022 rose to US$73.96 million from US$25.55 million due primarily to the inclusion of production costs from the Brage Field in Norway, and an increase in production costs in Oman from the planned change-out of the floating storage tanker and the planned change-out of the Mobile Offshore Production Unit. 

 

Dan Brostrom, executive chairman of Rex International, said the planned &ldquo major change-outs and upgrades of production facilities&rdquo in Oman were necessary and that the company&rsquo s operational issues in 2022 have been resolved.

 

&ldquo With the addition of the Yumna 4 producer well in January 2023, the group is looking to bring production up from 2022 levels, a natural decline in production in the earlier producer wells notwithstanding,&rdquo he said. 

 

Rex International said its board may consider paying out an additional interim dividend to shareholders, subject to the company&rsquo s performance in H1 this year. 

 

The company said its long-term target to get to 20,000 barrels of oil equivalent per day (boepd) remains. However, this will depend on the availability of rigs and other equipment, particularly for Oman and Malaysia

 

Rex International said it will continue to look for investment and development opportunities to bolster its production. Development plans for the Malaysian assets under the group&rsquo s wholly-owned subsidiary, Pantai Rhu Energy Sdn Bhd, are also ongoing and will be shared in due course, said the group.