Reach Energy recorded revenue of RM 54.9 million for the current quarter under review as compared to RM 50.7 million in the corresponding quarter of the preceding year. The group saw it profits declining to a loss with RM6.6 million compared to RM32 million profit in the previous year's quarter for the same period.
The oil and gas company saw its average production for the second quarter at 2,297 bopd as compared to 2,264 bopd for the second quarter of 2023. It said the higher revenue was attributed by a higher average selling price in the second quarter of 2024. The loss it added was mainly due to the unrealised FOREX gain.
Operating expenses for the current quarter under review showed an increase of RM 0.8 million as compared to the corresponding quarter of the preceding year. The increase in the operating expenses was mainly due to the increase in Taxes Other Than Income Taxes and Distribution Expenses which were in tandem with the increase in the revenue.
Reach said the higher Loss before Taxation in current six months period ended 30 June 2024 was mainly due to the lower finance income as compared to the corresponding six months period ended 30 June 2023 despite a lower Loss from Operations of RM 3.2 million in the current six months period as compared to Loss from Operations of RM23.3 million in the corresponding six months period.
The lower operating expenses in the current six months period ended 30 June 2024 was mainly due to the lower Depreciation and Amortisation and Distribution Expenses which were in tandem with the decrease in the production.