KrisEnergy

KrisEnergy: Believes that it will be profitable in 2015 and 2016 before taxes, largely from: 1) Existing oil and gas production (7,403 boepd in 3Q14) from B8/32 and B9A fields in the Gulf of Thailand, and Bangora gas fields onshore Bangladesh 2) New production in the Nong Yao field in the Gulf of Thailand. First production estimated to be by mid-2015 and is expected to reach a plateu at 15,000 bopd 3) First production in Wassana oil field, Gulf of Thailand expected to begin in 2H15, with gross peak production up to 10,000 bopd In a Business Times article, management concedes that lower oil prices would dent topline, but maintains that its production is viable at current prices given a break-even cost of US$30-40/bbl. As such, management’s optimism for FY16 profitability remains unchanged. KrisEnergy is also planning to quadruple production (9M14: 7,790 bopd) by 2017, and cites that lower oil prices could present attractive acquisition opportunities. KrisEnergy’s net gearing ratio stood at 33.85% in latest 3Q14 results. The street has 6 Buys and 1 Sell with a mean TP of $0.99.