Petrosea Q1 Profit Drops 24.6% - The Indonesia Today

Mining contractor PT Petrosea (PTRO) Tbk, a subsidiary of Indika Energy (INDY), booked net profit of US$7.69 million in the first quarter 2011, dropped 24.6% from the corresponding period last year.

Petrosea reported revenues of US$47.99 million in the quarter, increased 12% from Q1/10, while direct costs rose 12.7% to US$35.6 million. Petrosea then booked gross profit of US$12.39 million, increased from US$11.35 million in Q1/10.

Higher administration expenses and lower equity in net income of associates cut Petrosea's net profit substantially by 24.6% to US$7.69 million.

Petrosea owns 50% shares in PT Santan Batubara, a coal producer. PT Harum Energy (HRUM) Tbk owns the balance.

Indika reportedly plans to divest up to 30% shares in Petrosea. Indika acquired the company for about US$100 million two years ago.

Petrosea closed higher by 5.56% to Rp42,750 Wednesday (June 1). At that price, Petrosea has market capitalization of Rp4.275 trillion or about US$500 million, about four times equity as at March 31 (US$128 million).