KS Energy hit with $0.6m net loss in Q3

Revenue rose to $58.5m.

KS energy reported a $0.6m net loss in Q3, a decline from its $0.2m net profit in the same period last year.

Meanwhile, the group’s revenue rose 34.2% year-on-year to $58.5m. According to DBS, Revenue growth for the drilling business was flat on a sequential basis as two land rigs were idle due to tensions in Kurdistan.

“Looking ahead, the group is taking delivery of a rig from Cosco in 4Q14 but there has not been any official announcement of a charter contract yet. With the fall in oil prices which could potentially lead to lower charter rates during contract renewals, as well as the recent de-rating of the broader sector, we lower our peg from 0.8x to 0.65x P/B, resulting in a lower fair value estimate of S$0.48 (based on FY15F book),” noted DBS.