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Thai Oil swings to net profit in Q2

August 17, 2014


Thai Oil, Thailand's top oil refiner, reported a net profit in the second quarter, turning round from a loss a year earlier, mainly due to the rising value of its oil inventories as a result of rising crude prices.Thai Oil, nearly 50 per cent owned by top energy firm PTT, posted net profit of 2.09 billion baht ($64.8 million), in line with the 2.06 billion baht forecast by eight analysts polled by Reuters.This compared with a 1.55 billion baht loss a year earlier, when it suffered losses from its inventory and foreign exchange.Profit was down from 2.53 billion baht in the previous quarter due mainly to a planned refinery shutdown, which cut its refining and petrochemical output.More than a month after announcing a heads of agreement (HoA) on its qualifying asset, Sona Petroleum has finally inked a definite sale and purchase agreement (SPA) to buy a 40 per cent stake in the Thai unit of UK-listed Salamander Energy.The next step is for the special purpose acquisition company (SPAC) to get the approvals from shareholders and the Securities Commission (SC) before it can graduate as a junior oil and gas (O&G) player. As announced in June, the acquisition entails Sona buying into three asset classes in the oil and gas space.They are an ongoing production field, a near-term development asset and an exploration asset in an area called the G4/50 concession.The producing and near production assets are located in B8/38 concession in the Bualuang field while the exploration blocks are due for drilling soon.Sources said the deal was signed in Amsterdam, the same day Sona sent out invites for an analyst briefing and press conference.Sona shares, which had come under selling pressure in early June when the company announced its HoA with Salamader, had appreciated by some 10 per cent since late last week, to close at 53.5 sen.

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Source: Oil & Gas News

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