--------------------------------------------Arc Energy’s (ARQ)...

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Arc Energy’s (ARQ) 1H08 NPAT plunged 70%. Depreciation and unrealised hedge-book losses,both non-cash charges, had a significant impact on NPAT. However, its underlying business was strong with sales revenue of $103M, up 75% on the pcp. The hedge book loss is a one off, with future hedge-book losses expected to be incremental. ARQ has shown it is prepared to grow the business through both acquisition and greenfields exploration. We believe the stock is a value BUY at current levels.
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Aegis current weekly report on oil stocks, worth a look .. contact CBA.

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