Genting to record one-off net gain of RM390m

Saturday November 13, 2010

Genting to record one-off net gain of RM390m

PETALING JAYA: Genting Bhd is expected to record a one-off net gain of about RM390mil after its indirect 95%-owned subsidiary Laila Ltd received a total cash consideration of US$136.5mil.

Genting said in a statement to Bursa Malaysia yesterday that Laila had signed an agreement dated July 2, 2001, to sell Cairns Ltd, which had a 45% interest in the Muturi production-sharing contract (PSC) in Indonesia, to BP Global Investments Ltd (BPGIL).

Laila, which received an initial payment of US$106.8mil, was also entitled to payments of deferred consideration starting in the month in which commercial petroleum production attributable to the contract area and ending with the Muturi PSC termination.

“Laila has on Nov 12 received a total cash consideration of US$136.5mil to release BPGIL from its obligation to make any and all future payments including the deferred consideration, pursuant to an agreement signed with BPGIL on Oct 1, 2010,” Genting said.

“With the release, Laila is able to realise the value of the deferred consideration upfront instead of receiving future monthly payments of deferred consideration that would be subject to changes in commodity price, production and operational risks.”

It said the one-off net gain of about RM390mil would contribute an increase of about 10.6 sen to its earnings per share and net assets per share.

Genting added that none of the directors and/or major shareholders of the company and/or persons connected with them had any direct or indirect interest in the release.

http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7421804&sec=business