Reach Energy shoots higher
KUALA LUMPUR: Shares in Reach Energy Bhd are shooting higher in heavy trade after the company posted its first quarterly net profit since it took over full control of an oil and gas field in Kazakhstan more than a year ago.
At 2.45pm, the stock was up 3 sen, or 12% to a four-month high of 28 sen.
The company said on Monday higher price of crude oil in the world market and increased production volume had boosted profits in the second quarter ended June 30.
The group reported a profit before tax of RM12.6mil and profit after tax of RM 4.6mil on revenue of RM67.7mil
Reach Energy said average production in the second quarter 2018 was 2,900 barrels of oil per day (bopd), compared with 2,500 bopd in the same corresponding period last year.
It expects to add another 1,000 bopd in production by the end of the year.
Rising production is positive for Reach Energy, as the global benchmark Brent crude in London traded above US$76 a barrel compared with around US$50 a barrel a year ago.
Meanwhile, shares in another oil producer Hibiscus Petroleum Bhd are also on the roll, surging 3 sen to RM1.10 with more than 34 million shares traded.