RH Petrogas Issues Profit Guidance for 3Q 2015 in Low Oil Price Environment
Singapore-listed RH Petrogas Limited (the Company) announced Monday that following a review of the unaudited financial results of the Company and its subsidiaries (the Group) for the third quarter period ended Sept. 30 (3Q 2015), the Group is expected to record a significant loss for 3Q 2015 and for the full financial year ending Dec. 31 (FY 2015) due to goodwill write-off, impairment loss on exploration and evaluation assets as well as oil and gas properties.
In view of the protracted low oil price environment, the Group carried out a reassessment of the goodwill which arose from the Group’s acquisition of Kingworld Resources Limited, which holds the petroleum contract for Fuyu 1 Block in China. The Group also carried out a review of the fair value of its exploration and evaluation assets as well as oil and gas properties in Indonesia, the Kepala Burung Production Sharing Contract (Basin PSC) and the Salawati Kepala Burung Production Sharing Contract (Island PSC).
As a result, the Group will write off part of the goodwill and provide impairment losses on certain exploration and evaluation assets as well as oil and gas properties in 3Q 2015.
This profit guidance is based on a preliminary review of the draft management accounts of the Group for 3Q 2015. Details of the Group’s financial performance for 3Q 2015 and FY 2015 will be disclosed when the Company announces its un-audited consolidated financial statement for the relevant periods.
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.
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