- RHP reported a strong set of 1Q24 results that were above expectations. Net profit rose 18% y-o-y on the back of slightly higher oil production, better realised oil prices and very commendable cost control. Planning for the company’s two exploration wells for 2H24 remains on track.
- - Read this at SGinvestors.io -
1Q24 results slightly stronger than expected.
- RH PetroGas (RHP, SGX:T13)’s 1Q24 revenue rose over 5% y-o-y to US$23.8m, pushing PATMI up by 18% y-o-y to US$3.5m. This was better than our expectations as it represents >27% of our full-year PATMI estimates.
- The strong 1Q result was due to oil production (+1.2% y-o-y to 4,976bpd), lower field operating costs and lower general & administrative costs.
- - Read this at SGinvestors.io -
Drilling plans for 2H24.
- RHP’s two-well drilling programme in the Basin PSC (RHP’s stake: 70%) includes:
- one well targeting a shallow reservoir with potential unrisked recoverable reserves of 8-10mmbbl, and
- the second one targeting a deeper reservoir of around 8- 10bcf of gas at around 10,000ft.
- The gross cost of the wells will be US$4m and US$8-10m respectively. It is important to note that Pertamina drilled two successful oil and gas wells that were only 2-4km away from RHP’s first planned shallow well and thus it would appear that the likelihood of a positive result is high in our view.
Strong operating cashflow.
- Read more at SGinvestors.io.
