Rex International swings back into the black in 2Q on one-off gain

SINGAPORE (Aug 13): Rex International reported earnings of US$23.6 million ($32.7 million), or 1.83 US cents per share, for the 2Q19 ended June, reversing from the net loss of US$2.7 million in 2Q18 a year ago.

This was the result of a surge in other income to US$29.4 million from US$90,000 last year, which was mainly due to a gain from sales of interests in licences to a third party.

For 2Q19, the Catalist-listed oilfield services did not record any service revenue, compared to a revenue of US$90,000 in 2Q18 which came from technical services rendered to external clients by its subsidiary Rex Technology Management.

For the six months ended June, earnings came in at US$22.6 million, or 1.75 US cents per share, compared to a net loss of US$4.8 million last year.

In its outlook statement, Rex noted that it is actively monitoring the sustained volatility of oil prices, as it forges ahead with its aim to achieve first oil in Oman by the end of this year.

"In Norway, drilling on the Shrek prospect in the new farm-in Norwegian Sea licences is expected to start in second half of FY2019, while marketing efforts for Rex Virtual Drilling are being stepped up," adds Rex.

As at 10.14am, shares in Rex are up 0.4 cent at 6.6 cents, with 13.4 million units traded.