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"Daewoo Int'l Will See Its Profit Rise in 4Q"...Shinhan Investment

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Thursday, September 12th, 2013
SEOUL, KOREA- Shinhan Investment Corp. said on September 11 that Daewoo International will be able to improve its financial performance by the fourth quarter when it reflects profits earned from Myanmar's gas field. Shinhan Investment maintained its target share price on the trading company at 46,500 won with the investment opinion at "buy" as before.
 
Shinhan Investment analyst Heo Min-ho said, "The gas field off Myanmar with which Daewoo International has a stake began production on June 22 and started sending gas through a 782-kilometer surface pipeline in the country. In August some of the gas was sold to Chinese energy companies on an experimental basis."
 
The current production volume is about 120 million cubic feet a day from four boreholes, with actual supply amount reaching 30-70 million cubic feet. Starting November this year, the gas field will produce 200-million-cubic-foot gas a day from five holes.
 
Heo the analyst said, "During the third quarter, Daewoo International won't see any improvement in profitability from the gas income. But it will see sizable improvement from the following quarter as it sells a lot more gas to Chinese companies."

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