Rex Reports Five-fold Year-on-year Increase in Revenue for 1H FY2021

Source: www.gulfoilandgas.com 8/12/2021, Location: Middle East

Rex International Holding Limited, an oil exploration and production company, has announced its financial results for the six-month period ended 30 June 2021 (“1H FY2021”). For 1H FY2021, the Group recorded revenue of US$75.76 million, mainly from subsidiary Masirah Oil Ltd’s share of the produced oil after the Oman government’s take. This was a five-fold increase from revenue of US$14.57 million in the six-month period ended 30 June 2020 (“1H FY2020”). Profit after tax of US$27.72 million was recorded in 1H FY2021, against a total loss after tax of US$23.03 million for 1H FY2020. EBITDA for 1H FY2021 was a positive US$45.63 million, versus EBITDA of negative US$14.63 million for 1H FY2020; a 412 per cent increase.

Mr Dan Broström, Executive Chairman of Rex, said, “The Group’s revenue in the first half of 2021 was buoyed by the doubling of oil liftings in Oman to six from the same period last year, and an increase in the average realised oil price sold from an unprecedented low of US$23 per barrel in 1H FY2020 to US$62 per barrel in 1H FY2021. High initial start-up costs in 2020 and exploration drilling costs in Oman for 2021 are now behind us; and while we have increased production in 2021 with two additional production wells, we are maintaining operating costs in Oman at about US$80,000 per day. Brent oil prices were around US$70.50 on 11 August 2021, more than triple of Brent price lows of about US$20 a barrel in 2020.”

“Our 90 per cent subsidiary Lime Petroleum AS’s acquisition of a 33.84 per cent in the producing Brage Field is pending regulatory approval. Production from the Brage Field of estimated 3,440 barrels of oil equivalent per day net to Lime Petroleum is expected to add another leg to the Group’s current oil production in Oman. Net 2P Reserves of about 7.3 mmboe from the Brage Field will also be added to Lime Petroleum’s current attributable 2C Contingent Resources of 27.7mmboe in three existing discovery assets in Norway: PL1125 Falk, PL433 Fogelberg and PL838 Shrek. The three discovery assets are slated to be further developed in the coming years. Exploration drilling of the Fat Canyon prospect is expected to be drilled towards the end of the third quarter of 2021,” Mr Broström added.

“Our goal is to continue our first half performance; that is, to have one lifting per month from Oman in the second half of 2021. For the full-year 2021 results, we will also be able to add production income from the Brage Field from 1 January 2021, upon completion of the acquisition,” he said.

As at 30 June 2021, the Group’s cash and cash equivalents and quoted investments totalled US$46.23 million (31 December 2020: US$46.31 million); with cash and cash equivalents at US$18.85 million (31 December 2020: US$20.38 million); and quoted investments at US$27.38 million (31 December 2020: US$25.93 million). It is to be noted that US$40.51 million from sale of crude oil for the 4th and 5 th liftings in 2021 was received in July 2021. US$18.44 million from the 6th lifting in 2021 was received in August 2021. As such, revenue from the 4th to 6th liftings in 2021 is reflected under trade receivables (including government take which would be offset by accounts payables) as at 30 June 2021.


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