Titan Achieves H1 Profit Through Asset Sales

Guangdong Zhenrong Energy paid off debt from Titan Quanzhou Shipyard 

Titan Petrochemicals (Titan) achieved a profit for the first half of 2014, thanks to gains from selling off at least 10 businesses, the South China Morning Post reports.

Titan, which has been struggling with debt through restructuring efforts over the last several years, reported a profit before tax from continuing operations of HK$3.77 billion ($486 million) in H1, after losing HK$5.02 billion ($6.48 million) in the same period last year.

The profit was due to a gain of HK$4.14 billion ($534 million) on the disposal of assets.

"We will continue to work extensively with our financial and legal advisers to further speed up the debt restructuring process and the resumption of trading of the company's shares," said Chairman Zhao Xuguang.

Trading of the company's stock has been suspended for more than two years.

Titan did not report any revenue from continuing operations so far this year, compared with sales worth HK$117 million ($15.1 million) in H1 2013.

Its net liabilities fell to HK$4 billion ($516 million) in June from HK$7.7 billion ($994 million) at the end of last year.

Titan is controlled by Guangdong Zhenrong Energy, which has been seeking to help the company recover by paying off the debt from Titan Quanzhou Shipyard and buying its fuel storage assets from liquidators.

Oil drilling rigs maker Keppel agreed in April to operate the shipyard in exchange for a fee of $2 million per year and a share of its profits.

Titan announced in May that it had reached a deal with three creditors to pay back debts for a tenth of the amount owed.