KrisEnergy

KrisEnergy: 2Q14 net loss narrowed y/y to US$5.8m (2Q13: -US$8.2m), while revenue accelerated 34% y/y to US$22.3m on increased production (+212%) and higher average selling prices (+5%). The bottom line benefitted from farm-in income received for joint studies and time-writing income (US$2.5m), offset by higher staff costs (+48%) on the ramp up of development activities. The higher production and lower operating costs resulted in a significant drop in average lifting costs to US$7.50/boe (2Q13: US$26.05/boe; 1Q14: US$4.96/boe), following the closure of the Kambuna gas-condensate field in Indonesia in Jul '13. With a portfolio consisting a mix of assets across each stage of the exploration and production life cycle, KrisEnergy's operational risk is also spread across several countries with different taxation regimes and regulations. In addition, KrisEnergy has secured debt capacity of up to US$643m, to sufficiently fund its development program through to 2017. Currently, the group has a portfolio consisting of 19 licences, production of 8,000 boepd and 2P + 2C resources of up to 204.5mmboe, across five countries- Indonesia, Thailand, Vietnam, Bangladesh and Cambodia. At the current $0.745, KrisEnergy is valued at 1.4x P/B, compared to peers' average of 1.9x.