28th Sep 2018 12:56
LONDON (Alliance News) - Ncondezi Energy Ltd on Friday said its loss widened in the first half of 2018 as it continues to seek an agreement from Mozambique government for its updated tariff proposal.
In addition, Ncondezi Energy announced a departure of Non-Executive Director Christiaan Schutte, who will be leaving on Sunday. The company said Schutte intends to take up a senior role at a large power company in South Africa, the name of which was not specified.
"I would like to thank Christiaan for his significant contribution to the development of the company over the last five years where his deep experience in the southern African power sector has been invaluable," said Non-Executive Chairman Mike Haworth.
The stock was down 9.0% on Friday at 6.05 pence per share.
The power development company said its pretax loss widened sharply in the six months to June 30 to USD2.4 million from USD671,000 reported for the same period a year ago, due to an increase in operating expenses.
Finance costs more than doubled to USD765,000 from USD671,000 a year prior, while administrative expenses rose to GBP1.7 million from USD324,000. Administrative expenses refer principally to staff costs, professional fees and travel costs, the company explained.
During the period, Ncondezi Energy said it was focused on finalising the formal document which will govern the relationship between the parties in developing the 300 megawatts Tete power & coal mine project in Mozambique.
China Machinery Engineering Corp and General Electric South Africa Pty Ltd intend to buy at least 60% interest in the project. However, prior to this transaction, Ncondezi Energy has to secure an approval from Electricity de Mozambique and the Ministry of Mineral Resources & Energy for proposed financial model and updated tariff proposal.
In early June, Ncondezi Energy said it has submitted the updated tariff proposal to seek support to initiate negotiations for a new power tariff envelope. Upon successful completion, the company believes the JDA can be finalised within three months.
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