(Registration Number: 198701138Z)
PROFIT GUIDANCE ON THE UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2025 DUE TO WRITE-OFF OF PAST EXPLORATION COSTThe Board of Directors (the "Board") of RH Petrogas Limited (the "Company") wishes to inform that based on a preliminary review of the unaudited consolidated financial results of the Company and its subsidiaries (the "Group"), the Group is expected to record a net loss for the third quarter ended 30 September 2025 ("3Q 2025"), as compared to a net profit for the corresponding quarter in the previous year. Notwithstanding the above, the Group remains profitable for the nine-month financial period ended 30 September 2025 ("9M 2025").
The expected loss for 3Q 2025 is mainly attributable to the write-off of around US$7.5 million, being the Group's share of the costs incurred for the acquisition and processing of a 3D seismic survey conducted in the Salawati PSC offshore work area ("3D Seismic"). The write-off follows the recent completion of the review of the processed seismic data. Besides evaluating the exploration prospects identified within the survey area, the 3D Seismic also provided valuable information and insights on the regional geology, including the deeper zone potential, which would support the Group's future exploration efforts within the block and the adjoining Kepala Burung PSC, both of which are operated by the Group.
The Group is in the business of exploration, development and production of oil and gas. The 3D Seismic is part of the Group's ongoing exploration efforts to build and grow its oil and gas resource base organically. Any exploration success will contribute to the Group's long-term growth and add value to stakeholders. In this regard, the Group is planning to drill two additional exploration wells in the Kepala Burung PSC in the near term, with the first well expected to be spudded before the end of the year.
As there are currently no imminent plans for further activities in the seismic area, the Group has written off the capitalised 3D Seismic costs at this stage.
Notwithstanding the expected net loss for 3Q 2025, the Group is expected to generate positive EBITDAX(1) and positive net cash flows from operations for both the 3Q 2025 and 9M 2025 periods. Details of the Group's financial performance for 3Q 2025 and 9M 2025 will be disclosed when the Company announces its unaudited consolidated financial results for the above periods on or before 14 November 2025.
In the meantime, the Board wishes to advise shareholders of the Company and investors to exercise caution when dealing in the shares of the Company.
BY ORDER OF THE BOARDChang Cheng-Hsing Francis Group CEO & Executive Director 31 October 2025
(1)EBITDAX - Earnings before interest, tax, depreciation, amortisation, exploration expenses, impairment and other non-recurring items