Moody's: Anton unaffected by profit warning

Moody's Investors Service said that Anton Oilfield Services Group's profit warning for its profits for the first half of 2014, which are yet to be announced, is credit negative but will have no impact on the company's Ba2 corporate family rating or Ba2 senior bond rating. The outlook remains stable.

Anton announced that its first-half profits attributable to equityholders are expected to decline substantially from the RMB 164 million achieved in the first half of 2013. The agency said the expected weak profit will be mainly driven by slower revenue growth due to delays in project kick-offs, pricing pressure and the higher costs required to support business growth.

"We expect that Anton's profit decline is temporary and will recover over time, given the strong demand for natural gas in China and Anton's competitive position in China's market for natural gas-related oil field services," Chenyi Lu, a Moody's vice president and senior analyst, said in an agency news release.

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