China Shandong Molong shares halted as earnings postponed

HONG KONG, March 31 Mon Mar 31, 2014 3:48am EDT

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HONG KONG, March 31 (Reuters) - China's Shandong Molong Petroleum Machinery Co Ltd on Monday requested a halt in trading in its shares as it postponed the planned publication of its 2013 earnings by a day until Tuesday, after its board resumes a meeting that was adjourned on March 28.

The oil services company said in a statement on Monday that trading in its shares in Hong Kong and Shenzhen would remain halted until the release of its earnings announcement. It said its board would resume a meeting on Monday that was adjourned on March 28, without giving a reason for the adjournment.

Shandong Molong didn't specify a time for the planned earnings release on Tuesday.

Shares in the company, which has a market value of $779 million, have dropped more than 25 percent so far this year. Hong Kong's benchmark Hang Seng Index has fallen 5 percent in 2014.

The company has seen its bond yields surge. Its 5.2 percent bonds due 2016 are now yielding about 15 percent, up from 6.7 percent at the end of February, according to Thomson Reuters data.

At end-September, Shandong Molong's total debt was more than six times its earnings before interest, taxes, depreciation and amortization. Short-term debt was more than three times its cash, according to Thomson Reuters data.

The 500 million yuan 2016 bond has a coupon payment due later this year and the company has said previously it is confident it can meet its payment obligations.

"Our company is capable of paying the interests now, since it is not due until July," board secretary Zhao Hongfeng told Reuters earlier this month.

(Reporting by Umesh Desai and Shanghai Newsroom; Editing by Anne Marie Roantree and Kenneth Maxwell)

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