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Singapore “Flyer” Of The Week: Mirach Energy

mirach energy For the week ending 16 August, the Singapore “Flyer” of the Week accolade goes to Mirach Energy Limited (SGX: C68). It gained a total of 32.1% for the week. On 16 August 2013 itself, it gained 20.7%.

Mirach Energy is an energy exploration and production company with oil and gas interests in Asia. It operates on petroleum assets in Cambodia and South Sumatra, Indonesia. Mirach also provides effective technical oilfield services and solutions, including enhanced oil recovery (“EOR”) techniques and consultancy.

On 13 August 2013, the company released the first half of 2013 (1H 2013) results. It saw a 566% increase in 1H 2013 revenue to US$3.1 million over 1H 2012. Out of the US$3.12 million revenue, US$2.64 million was derived from the provision of advisory services and US$0.48 million was derived from technical oilfield services provided to associate company, CPHL (Cambodia) Company Limited (“CPHLC”).

From a net loss of US$2.4 million in 1H 2012, it made a profit of US$0.67 million in 1H 2013. The increase in profits was mainly due to the advisory services revenue of US$2.5 million derived from Project Global Investment Limited.

As of 30 June 2013, the company has a total debt of $12.7 million in terms of convertible bonds. The company has negative reserves of $13.9 million, which may correspond to the losses made by the company over the years.

There was negative cash flow from operations for 1H 2013 of $2.1 million. For the previous year, the cash flow was negative as well at $2.6 million. The ending cash balance decreased from $8.2 million in 1H 2012 to $3.1 million in 1H 2013.

Cash is the lifeblood of any company. Even though the company had negative cash flow, the market seems to be rejoicing, sending the stock up so much for it to garner our Singapore “Flyer” top spot.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.