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Energy: Petsec takes a hit as US gas prices plumb record lows; still trying to make Yemen work
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US gas prices hit their lowest point in 15 years during the March quarter and struggling producer Petsec Energy (ASX:PSA) hasn’t come out the other side unscathed.
Sydney-based Petsec today reported a 25 per cent quarter-over-quarter drop in its average sales price, which contributed to a more than 40 per cent decline in net revenue.
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Net revenue for the March quarter came in at US$473,000 ($666,494) — 41 per cent lower than the prior December quarter and a 44 per cent decrease on the March quarter of 2018.
US production was also down, sliding 20 per cent on the December quarter and 41 per cent on the same quarter last year to 139 million cubic feet equivalent of gas.
Petsec said production was lower mainly due to well performance.
The company is also still facing challenges in Yemen, with operations at the An Nagyah oilfield remaining suspended.
The company is trying to secure Yemen government approval to truck oil about 70km to the east to a pipeline operated by Yemen Company for Investment in Oil & Minerals — a Yemen government owned company — and south through that pipeline to the export terminal at Bir Ali on the Arabian Sea Coast.
Petsec has been contacted for comment.
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