Sumatec Resources back in the black in first quarter

PETALING JAYA: Sumatec Resources Bhd posted a net profit of RM457,000 for the first quarter ended March 31, 2018 compared with a net loss of RM743,000 a year ago thanks to revenue derived from consultation contract billing.
Revenue, however, was 64% lower to RM1.49 million compared with RM4.17 million in the previous year’s corresponding quarter.
Sumatec said the Rakushechnoye Concession is a quality asset. It is an onshore oil and gas field, which requires modest capital expenditures. Rakushechnoye’s projected capital expenditure per well being just a fraction compared to offshore production, the production cost per barrel for its operation will be low.
“The company is now exploring several funding options to increase production at Rakushechnoye. The company expects to materialise this effort and move ahead with the proposed field development plan to increase production by the end of the year.”
Notwithstanding the prospect ahead, at the same time, the company will have to deal with legacy debt issues while moving forward, it added.