Tuesday, August 17, 2010

Assam Company Q2 net profit Rs. 100 million (10 Cr.)

Total Revenue for the quarter stood at Rs. 383.9 mn and total revenue for the first half of the year stood at Rs. 635.3 mn

Assam Company India Limited (Assam Co.), a Company engaged in Tea plantation, Oil & Gas exploration and production (E & P) and Infrastructure development today announced its results for the quarter and half year ended 30 June 2010.

Total Revenue for the quarter stood at Rs. 383.9 mn and total revenue for the first half of the year stood at Rs. 635.3 mn. Improved realizations in Tea and Oil & Gas contributed meaningfully to the top-line. Operating profit for the quarter stood was Rs. 120.8 mn.

Notional loss on foreign exchange fluctuation in H1 CY2010 was Rs. 33.1 mn as against exchange profit of Rs. 12.7 mn in H1 CY2009. Interest for the current quarter and 6 months has been contained due to improved financial management. Profit after Tax was Rs. 100.8 mn for Q2 CY2010 at a healthy margin of 26%

Performance overview of Q2 & H1 CY2010:

Oil & Gas production have increased following the completion of the dual operation in May 2010
1,700 BOE per day was achieved in June 2010 as compared to 1,200 BOE per day in Q2 CY2009

Realization for the quarter has also improved contributing substantially to overall performance of the Company. Gas Reinjection facility at the Amguri block is nearing completion and the commissioning is expected by September 2010. On commissioning, production is expected to ramp up progressively in the coming months. The 2P recoverable resource of the Amguri block is 60 mmbbls of oil and 229 bcf of gas as per the report received from Sproule International Limited, a recognized body for certifying resources from development blocks. Assam Co. has a 40% participating interest in the Block. Tea production for the quarter had suffered due to excessive and continuous rainfall resulting in lower temperature and unprecedented pest activities

Tea mosquito called “HELOPELTIS” had attacked most of the tea plantations in Assam in the month of May and June 2010. Tea Realization for Assam Co. during the quarter increased on a steady basis on the back of upgraded quality. Average Realization for quarter was at healthy Rs. 146 per kg taking average realization to Rs 127 for the first half of 2010. Higher realization compensated for the lower production in the quarter. Realization is expected to improve further, driven by demand for quality produce

Commenting on the performance of Q2 & H1 CY2010 A K Jajodia, Managing Director of Assam Company India Ltd said:“I am delighted to share that our efforts towards improving production in oil blocks is starting to yield results. Production in the last quarter has enhanced substantially following the completion of dual operation in March 2010. The Gas re-injection facility is also nearing completion and we expect the production to increase expressively after the commissioning of the plant.”Our performance in the tea for the quarter was satisfactory even after experiencing unfavorable climatic conditions in the last few months. We have been able to outperform the market by improved price realization driven by quality upgradation and intelligent marketing. Effects of the rain and the pest attack have worn off completely and production has now been ramped up to normal levels. We believe that we are firmly placed to significantly improve our profitability in the tea segment in coming quarters with better realizations and higher production.”

Courtesy: http://www.indiainfoline.com/Markets/News/Assam-Company-Q2-net-profit-at-Rs100.8mn/4908873508

No comments: