SINGAPORE (Mar 1): Upstream oil and gas company KrisEnergy posted full-year losses of US$139.2 million ($183.7 million) for the FY17 ended December on the back of lower expenses, improving from losses of US$235.3 million a year ago.

A 59.0% increase in the annual average realised crude oil price to US$49.26 per barrel bolstered revenue to US$140.7 million in FY17, relatively flat to year-ago levels of US$142.8 million.

The group’s oil and gas production saw a 21.0% decrease in to 12,745 barrels of oil equivalent per day (boepd).

General and administrative expenses nearly halved to US$22.0 million in FY17, compared to US$38.6 million a year ago.

The decrease was primarily attributable to lower general and administrative expenses allocated and lower employee benefits expenses.

Other operating expense decreased to US$64.1 million in FY17, from US$201.2 million a year ago.

This was mainly attributable to a net fair value gain of US$73.9 million for the exchange of 2017 Notes and 2018 Notes to 2022 Notes and 2023 Notes, respectively.

As at end December, cash and cash equivalents stood at US$65.6 million.

“Although we welcomed the steady improvement in oil prices throughout 2017, the markets’ gyrations in the first two months of 2018 continue to test confidence in the upstream sector and management’s ability to plan and commit to capital expenditure,” says KrisEnergy CEO Kelvin Tang.

“In this uncertain environment, our emphasis will remain on safeguarding our balance sheet through cost control, focusing capital expenditure towards committed expenditures whilst at the same time, continuing to maximise oil and gas production,” he adds.

Shares of KrisEnergy closed 0.1 cent down at 9 cents on Wednesday.