RH Petrogas

RH Petrogas: FY13 net loss was US$65.9m, reversing net profit of US$6.1m in FY12. Revenue was flattish at US$86.4m as lower average production and realized oil prices were offset by higher oil and gas entitlement from the cost recovery for FY13 at Basin and Island PSCs. Bottomline was severely weighed by an impairment loss of goodwill (US$28.8m), write-off on unsuccessful exploration and evaluation expenses (US$44.2m) and FX loss of (US$4.5). Management highlights the expected increase in non-OPEC supply of oil, plus the potential of QE tapering may weigh down oil prices. Management is also expecting a number of positive developments including approvals for North Klalin (Basin PSC), SE Walio (Basin PSC), and Fuyu 1 Block. NAV was US24.17¢, which translates to ~1.7x P/B