S&P says Unocal ratings unaffected by Sarulla deal
Friday, July 18 2003 - 12:39 AM WIB
Standard & Poor's Ratings Services said today that Unocal Corp.'s (BBB+/Stable/A-2) ratings would be unaffected by potential sale of its investment in Tom Brown Inc., as filed in a recent SEC Form 8-K, and the recently announced sale of its Sarulla geothermal project in Sumatra, Indonesia.
Based on Tom Brown's July 14, 2003, closing common stock price, total after-tax cash proceeds are estimated to be $135 million for Unocal's 14.71% interest, although the timing of any potential sale is unknown at this time.
The sale price for the Sarulla project, which is being sold to PLN, the Indonesian state electricity company, is expected to be U.S. $60 million, and is anticipated to close during the third-quarter 2003. Such actions by Unocal are expected in the near- to mid-term and have been factored into the current rating, as Unocal seeks to reduce debt and improve operating results, particularly in the Lower 48 U.S. region. (End of release)