SINGAPORE (Aug 14): Energy services provider KS Energy Group announced a loss of $0.6 million for the 2Q17 ended June, narrowing significantly from the loss of $31.5 million posted in the same period a year ago.
This was largely due to improved share of results of joint ventures, combined with a smaller loss from operating activities as well as an improvement in revenue over the quarter.
Revenue for 2Q17 grew 17.2% to $15.1 million from $12.9 million a year ago, mainly due to higher revenue from the group’s drilling segment which more than offset the revenue decline seen from the engineering segment.
Over the quarter, the group saw a smaller loss from operating activities of $2.1 million compared to the loss of $13.1 million a year ago, as a result of a smaller loss on disposal of plant and equipment recorded.
Share of results of joint ventures (JVs) also recorded a gain of $17.8 million compared to a loss of $4.9 million in 2Q16, mainly due to a $20.5 million gain recorded in the quarter under review following a court ruling.
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The group also saw a $0.5 million reduction in net finance costs on a quarter-on-quarter basis.
For the six months ended June, KS Energy posted a smaller loss of $17.4 million, representing a 68.4% improvement from its loss of $55.2 million in 1H16.
While the outlook for the offshore services sector continues to be affected by the uncertainty of oil prices, which has reduced the demand for the rigs and related services, KS Energy says it believes long-term economic fundamentals remain supportive for the oil and gas (O&G) services segment.
The group seems to manage its balance sheet to improve its financial position, it adds.
Shares in KS Energy closed 5.9% lower at 3.2 cents on Monday.
