Thailand’s PTTEP Q2 net profit falls 32% on one-off losses

24 July 2012 06:39  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s PTT Exploration and Production (PTTEP) reported on Tuesday a 32% year-on-year fall in its second-quarter net profit to $250m (€208m), after taking into account one-off losses amounting to $211m.

More than half of the losses or $109m booked in the second quarter is an impairment loss from delays in oil production and higher cost incurred at the company’s Australasia project, PTTEP said in a filing to the Stock Exchange of Thailand.

The company’s revenue for the three months ended 30 June 2012 increased 12% year on year to $1.67bn, it said.

In the first half of 2012, PTTEP said its net profit grew 15% year on year to $839m, with revenue rising by 17% to $3.26bn.

PTTEP has launched a £1.22bn ($1.91bn) takeover bid for 100% of Cove Energy in May that will expire at 1:00 pm London time on 25 July.

Cove Energy has an 8.5% interest in the Mozambique Rovuma Offshore Area 1 (Rovuma project), which is currently estimated to have a resource potential of some 12 trillion cubic feet (tcf) of gas and is being eyed for a liquefied natural gas (LNG) project development.

The Thai firm, which is a subsidiary of southeast Asian energy major PTT, has received a written consent from Mozambique’s Minister of Mineral Resources on the acquisition.

“The acquisition would mark PTTEP’s entry into the East Africa hydrocarbon province, which is consistent with PTTEP’s strategy of sustainable growth,” the company said.

Cove Energy has operations in Mozambique, Tanzania and Kenya.

PTTEP’s price for Cove at 240 pence a share is currently the highest after Anglo-Dutch energy giant Shell decided on 16 July to keep its offer at 220 pence/share.

On 20 July, the Thai firm announced that it will issue 650m new shares to raise funds.

Its parent firm PTT will take up 403.4m of the newly issued shares to maintain its 65.3% stake in PTTEP.

At 12:32 Singapore time (05:32 GMT), PTTEP shares were trading at baht (Bt) 156 ($5), down by 0.95% from Monday’s close, while PTT shares were down 0.31% at Bt325.

($1 = Bt31.83 / $1 = €0.83 / $1 = £0.64)

By: Pearl Bantillo
+65 6780 4359

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