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Friday, August 29, 2014

Sumatec shares, warrants down, active trade after profit warning (Edge)

Shares and warrants of Sumatec Resources Bhd continued to be actively traded today, emerging as the top and sixth most heavily-traded stocks respectively in morning trades, after the Practice Note 17 (PN17) oil and gas (O&G) company made known that it may not meet its FY14 net profit forecast...

Yesterday, Sumatec cautioned investors that it may fall short of the forecast net profit of RM69 million for its financial year ending Dec 31, 2014 (FY14).
“In view of the technical requirements to install artificial lift pumps on a number of wells, the company as a result has seen a delay in bringing some of the wells onto production,” the group had told Bursa Malaysia.

It added that to address the situation, its management will deploy all available resources to expedite completion of the remaining works under the workover programme.

It will also install the artificial pumps and conduct production enhancement on each well, as well as add more wells into the workover programme.

Sumatec returned to profit in the second financial quarter ended June 30, 2014 (2QFY14), posting a net profit of RM6.7 million compared with a net loss of RM3.94 million a year ago. The group generated revenue of RM13.75 million from its upstream O&G activities.

The better 2QFY14 results helped the group swing to a profit during the six months period of RM11.17 million, from a net loss of RM9.16 million a year earlier. Its revenue stood at RM27.49 million.

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