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KS Energy nets Pakistani drilling

By  Friday, 22 May 2015 02:03
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Onshore land rig, KS Discoverer 3, owned by KS Energy, has been contracted for drilling work with Ocean Pakistan.

Scheduled to begin operation in 2Q 2015, KS Discoverer 3 will be hired for 60 days by KS Energy’s drilling and rig management subsidiary, KS Drilling, for the price of approximately US$1.5 million.

KS Drilling, an 80%-owned subsidiary of the company, is an investment holding firm.

The contract, however, is not expected to have any material effect on the earnings per share and net tangible assets per share of KS Energy for the financial year ending 31 December 2015.

In March, KS Discoverer 1 was contracted for drilling work with Korea National Oil Corp., for 150 days, at total value of $7 million.

Last week, the Singapore-based firm informed that its consolidated revenue was $35.1 million in the three months ended 31 March 2015, a decrease of $10.9 million from the $46.0 million earned in 1Q 2014.

The firm said this was mainly due to lower revenue from the drilling business. Revenue from the drilling division dropped $6.0 million, from $40.5 million in 1Q 2014 to $34.5 million in 1Q 2015. Revenue from the engineering business decreased $2.7 million, from $2.8 million in 1Q 2014 to $0.1 million for 1Q 2015.

Furthermore, administrative expenses increased from $7.2 million in 1Q 2014 to $7.3 million this year. Operating expenses rose from $2.3 million in 1Q 2014 to $11.2 million in 1Q 2015 due to idling rigs. Total loss after tax was $9.9 million for 1Q 2015 compared to profit after tax of $1.2 million reported in 1Q 2014 - a decrease of $11.1 million.

“The outlook for the offshore services sector is being affected by the lower oil price, which has reduced the demand for rigs. The group expects its distribution division to continue to be important to overall performance,” said KS Energy in a statement.

Image: KS Discoverer 1 rig / KS Drilling.

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