Gas producer Arrow Energy says it expects its half year earnings to be up more than 80 per cent on the corresponding period a year ago.
Arrow told the Australian Securities Exchange today that it expected earnings before interest, tax, depreciation and amortisation (EBITDA) before adjustments and one-off items of $10 to $12 million, compared to $5.5 million for the corresponding half a year earlier.
About noon, shares in Arrow were trading up 15 cents, or 4.23 per cent, at $3.70.
The Brisbane-based company said increased efficiencies and profitability from its field performance had contributed to the forecast result.
Another primary driver was the consolidation, for accounting reasons, of 100 per cent of the Braemer 2 Power Station partnership, as a result of Arrow's increased interest in the project and options over the remaining stake.
Arrow was forced to reveal the updated figures after the ASX inquired after the company's recent share price fall from $4.38 on January 15 to Monday's intra-day low of just $3.40.
The company is due to publish its half-year accounts on February 17.
"The Arrow Board advise that the after tax profit for the half year ended 31 December, 2009, will differ by more than 15 per cent from the after tax profit of $241 million in the equivalent period last year," Arrow said.
It said the prior year's financial results had been affected by the 30 per cent sale of tenements to Shell for $307 million, the revaluation of Arrow's investment in Pure Energy Ltd and the profit from its sale of its 50 per cent interest in the North Queensland Gas Pipeline.
The company also issued a statement that said the cost of funding the Upstream Field Development and Surat to Gladstone Pipeline was estimated to be $1.32 billion to first gas.
Arrow said it was considering options to pay for its Fisherman's Landing Liquefied Natural Gas (LNG) project.
Arrow said options included taking on more debt, issuing new shares, or selling part of the project.
AAP
