24th Sep 2014 10:26
LONDON (Alliance News) - Infrastructure and resources investment company Amedeo Resources PLC Wednesday said it swung to a loss in its first-half on the back of higher costs and the lack of foreign exchange gains which sweetened its earnings last year.
Amedeo said its pretax loss for the six months to June 30 was USD815,000, against a USD181,000 profit posted a year earlier. The loss came on the back of a rise in costs, with administrative expenses increasing to USD453,000, from USD320,000, and its share of loss of associates more than tripling to USD624,000 from USD206,000.
The majority of the shares of the loss of associates costs incurred were related to its Jiangsu Yangzijiang Offshore Engineering Co Ltd, while its MGR Resources PTE Ltd business remained profitable, it said.
The company's results were given a boost last year by foreign exchange gains, which this year fell to USD80,000 in the half-year against USD706,000 in 2013.
Amedeo's revenue in the period increased, rising to USD36,000 from USD2,000 last year.
The group said its Jiangsu Offshore business now has an operational marine vessel yard. It said the company is holding talks over potential new orders, having started work on its first order for a Le Tourneau Super 116E Class design self-elevating mobile offshore jack-up.
For its MGR Resources PTE Ltd business, Amedeo said the business has remained profitable despite a difficult market environment. The company is also shifting from short-term to longer-term contracts, which became effective post the period end.
Amedeo shares were down 7.2% to 0.65 pence per share on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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