14th Jun 2016 10:14
LONDON (Alliance News) - Amedeo Resources PLC Tuesday said its loss was wider in 2015 after it booked a loss from its investment in an offshore fabrication firm that could not be offset by a tiny profit from its investment in a ferrous metals and ore wholesaler and trader.
The natural resource and related infrastructure investment company said its pretax loss in 2015 amounted to USD2.6 million compared to 2014 when it reported a loss of USD1.9 million as the amount of revenue generated remained nominal in the year.
The cause was a USD2.1 million loss from its its investment in YZJ Offshore Engineering Pte Ltd compared with the USD942,000 loss last year, but its investment in MGR Resources Pte Ltd contributed a USD45,000 profit in 2015 compared with a USD20,000 profit the year before.
Administrative expenses in the year dropped to USD651,000 from USD812,000 but share-based payments increased to USD261,000 from USD15,000. Finance income in the year was also slightly lower than in 2014 whilst the foreign exchange loss also declined.
Cash at the end of 2015 stood at USD2.4 million, rising from USD1.2 million at the end of 2014. Amedeo said its balance "post-year end" stood at USD4.2 million.
YZJ Offshore has completed the Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig, also known as Explorer 1, back in December and commissioning is now underway in preparation for delivery to the customer in the second half of 2016.
Amedeo holds an indirect 19.0% stake in YZJ Offshore.
"With respect to new orders, YZJ Offshore continues discussions with potential customers for further orders with the benefit that it now has a rig that is physically complete to showcase. This is important from both a marketing perspective and also from a reputational perspective. No new orders, however, have been forthcoming as currently the offshore vessel market remains difficult," said Amedeo.
Amedeo shares were trading up 9.4% to 9.85 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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