18th Sep 2018 12:23
LONDON (Alliance News) - Chagala Group Ltd said Tuesday that profit for the first half of the year dropped as US sanctions on Russia affected currency exchange rates.
For the six months to June 30, the company which provides facilities to the oil & gas industry in Kazakhistan, posted pretax profit of USD189,000, down from USD1.6 million. Meanwhile, revenue was down to USD8.3 million from USD9.6 million the year prior.
The company made a USD298,000 loss on foreign exchange compared to a USD350,000 profit a year ago.
The company's assets reduced to USD84.1 million from USD87.7 million a year ago.
Chief Executive Officer Svetlana Mendesh said: "With the threat of further sanctions to Russia and its consequences on the Kazakh economy, the first half of 2018 was challenging for Chagala and the country overall."
"The impact of numerous sanctions on neighboring countries, regional disputes and many other factors has affected through currency exchange rate charges into our financial figures, which have been perceptibly affected in terms, fundamentally, of profit."
Looking ahead, Chagala said it is going to focus on maximizing its "ever-expanding potential and maintaining its cutting-edge competitive advantage".
Chagala shares were untraded at USD2.