24th Sep 2014 10:28
LONDON (Alliance News) - Tidal power company Atlantis Resources Ltd Wednesday said its loss widened in the first half of 2014, due to higher expenses and finance costs and lower revenue.
The company reported a pretax loss of USD8.7 million for the six months to June 30, compared with a GBP7.9 million loss in the first half of last year. Total expenses - including employee benefits expenses, subcontractor costs and operating expenses - rose to USD7.4 million from USD7.0 million a year before, while finance costs rose to USD1.6 million from USD1.4 million.
The company also said it generated USD170,000 in revenue in the first six months of the year, from the provision of consulting services to Carnegie Wave Energy Ltd. This compares to USD2.1 million in revenue it generated in the first half of 2013.
Atlantis is focused on the development of the MeyGen project, located in the Pentland Firth in Scotland. MeyGen is the largest planned free-stream tidal energy project in the world, according to owner Atlantis. The first power from the project is expected in 2016 and it is estimated that 42,000 Scottish homes will be powered by the energy produced each year.
Last week, Atlantis said it had reached financial close on a GBP51 million funding package for phase 1A of the MeyGen tidal power project, with the funds to be released to suppliers and contractors to allow construction to start.
"The outlook for Atlantis remains strong and the board looks to the future with confidence," said Chief Executive Tim Cornelius in a statement Wednesday.
Atlantis Resources said it significantly strengthened its balance sheet over the six month period, on the back of funds raised from its recent IPO and the conversion of shareholder loans. It said its net asset positioned was strengthened to USD76.4 million at June 30, from USD21.6 million at December 31, 2013.
The company's stock was untraded Wednesday morning at 56.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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