Rex International - UOB Kay Hian 2023-08-28: Weak 1H23 Results As Expected, With Production Going From Bad To Worse

• Rex International reported a 37% y-o-y decline in PATMI that fell short of expectations. The highlight was its 12% y-o-y production growth, which was bolstered by new wells coming on-stream at Brage. However, its Oman oil production remains problematic.
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Worse-than-expected 1H23 results.

• Rex International (SGX:5WH) reported an 8% y-o-y increase in revenue that was helped by better-than-expected production at its Brage field as well as the inclusion of its newly-acquired Yme field. This was able to offset the 24% y-o-y decline in Brent oil prices.
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Production numbers have worsened…

• On our estimates, Rex saw a 12% y-o-y increase in production in 1H23 with the new well that was brought on-stream at Brage being the key difference. However we note that production at Yumna saw a 38% decline, which resulted in an overall 21% m-o-m decline in total production to 7,587bpd for Jul 23.

… as have Rex’s other financial metrics.

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Llelleythan Tan UOB Kay Hian Research | Adrian Loh UOB Kay Hian | https://research.uobkayhian.com/ 2023-08-28 SGinvestors.io

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