Apr 2007 Financial News

MORAVEN Releases Year End Results

Apr 30, 2007

Results for the Year Ended December 31, 2006

For the Year Ended December 31, 2006 Moraven Holdings Limited (MOV) reported Earnings Per Share (EPS) of 3.59 cents, which was down by an outstanding 77.06 per cent or 12.06 cents on the comparable period in 2005.

Operating Revenue for the twelve month period stood at $41.11 million and was up on the same period last year by 12.12 per cent or $4.44 million. Revenue from Crude Oil amounted to $41.11 million compared to $36.20 million in the corresponding period in 2005. Additionally, there was no Revenue from Natural Gas for fiscal 2006 compared to $0.46 million in fiscal 2005.

Operating Expenses however saw a larger increase, up 24.41 per cent from $30.69 million in FY05 compared to $38.18 million in FY06. Of these Expenses, Taxes other than Income Taxes was the largest outflow and stood at $19.84 million for the period under review compared to $18.27 million in the same period last financial year, an increase of 8.59 per cent. General and Administrative Expenses saw the largest increase, up 85.36 per cent or $4.48 million from $5.25 million (FY05) to $9.74 million (FY06). Conversely, Depreciation, Depletion and Amortization was the only expense to fall, down 8.42 per cent or $0.15 million from $1.76 million to $1.61 million.

Thus, Operating Profit for the period was down 50.95 per cent or $3.05 million to end the period at $2.93 million. Other Income stood at $1.20 million, up a by a small margin of 4.65 per cent or $0.53 million while Finance Costs totaled $1.39 million which was the same for FY05. Ultimately, Profit Before Taxation stood at $2.36 million, down by a considerable 55.37 per cent or $2.93 million from $5.30 million.

The Effective Tax Rate for the twelve month period under review was 87.48 per cent compared to a Tax Rate of 75.62 per cent in the last financial year. As such, Net Profit for the year was $0.30 million compared to $1.29 million for the corresponding period in 2005.

The shares of MOV last traded on the Second Tier Market on February 23, 2007, where it closed at a price of $3.20.

Gia Singh
WISE Equity Research Team