EMP books $33m net loss in first half

IDX-listed PT Energi Mega Persada Tbk (EMP) booked a net loss of US$33 million in the first half of the year, a reversal from a profit of US$ 175.69 million in the same period of last year, due to among others the weak oil prices.

Sales reached $323 million and EBITDA $168 million in the first half of the year, compared to $413.37 million sales and $254.13 million EBITDA in the same period of last year.

Imam Agustino, EMP?s CEO, said, ?On the quarterly basis, our Sales, EBITDA, and production volume are relatively consistent. The 2 main reasons for the net loss of US$33 million remain the weak oil price and the relatively large depreciation, depletion, and amortization costs as a result of EMP having to apply the IFRS accounting method (instead of GAAP method). This was explained in our press release issued on the 5th of June 2015.?

Didit Ratam, EMP?s Director, further explained, ?Despite the weakening oil price and the relatively high depreciation cost, our financial multiples remain consistent (from the last quarter). EMP recorded good debt to equity ratio of 0.72x and strong interest coverage ratio of over 6x.?

On July 27, 2015, EMP completed its new share issuance (over 4.46 billion of new shares) without pre-emptive rights at Rp100/share. The proceed of around Rp 446 billion (gross, before subscription fee) will be used to fund the company?s working capital requirements, in its effort to maintain 5% production growth this year and to settle some of the outstanding vendor payables. Consequently, EMP is expected to show improved liquidity ratio in the second half of the year.

Editing by Johannes Simbolon