27th May 2016 09:40
LONDON (Alliance News) - Atlantis Resources Ltd Friday reported a swing to a maiden pretax profit for 2015, mostly as a result of a gain from its acquisition of Marine Current Turbines Ltd.
For 2015 the company reported a pretax profit of SGD4.3 million, swung from a pretax loss of SGD16.2 million. This was mostly as a result of gains of SGD27.9 million, related to its MCT acquisition and its sale of a 50% stake in Atlantis Operations Canada Ltd, which offset higher operating expenses.
Revenue fell to SGD2.9 million from SGD5.3 million.
At current exchange rates this equates to a pretax profit of GBP2.1 million, swung from a pretax loss of GBP8.0 million, on gains of GBP13.9 million. Revenue fell to GBP1.4 million from GBP2.6 million.
Atlantis agreed to buy MCT group, which is focused on the tidal energy sector, from Siemens AG in the first half of the year. The acquisition resulted in a bargain purchase gain of SGD19.3 million, or GBP9.6 million at current exchange rates, mainly from the fair valuation of MCT's turbine technology and seabed options.
At the beginning of the year the company began construction of its MeyGen project in northern Scotland, which is on track to deliver first power in 2016.
In December, it agreed to buy two projects for its Scottish tidal development company, Tidal Power Scotland.
Following the year end, the company agreed a partnership deal with Equitix to advance its portfolio of tidal power projects in Scotland.
Last month the company said it had struck a deal to sell a 2% stake in Tidal Power Scotland to DEME Concessions NV for a cash payment of GBP2.0 million. DEME Concessions is part of the Belgian-based DEME Group, a company focused on dredging, environmental and marine engineering that generated EUR2.35 billion in revenue during 2015.
"We have started 2016 where we left off in 2015 and the announcement of our partnership agreement with Equitix represented a major turning point in the transition from demonstration projects to the deployment of commercial scale arrays. Furthermore, the proposed sale of our stake to DEME brings a key long-term strategic partner for the future build out of our project portfolio," said Chief Executive Tim Cornelius in a statement.
Shares in Atlantis Resources were up 3.0% at 59.25 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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