30th Sep 2014 14:34
LONDON (Alliance News) - Origo Partners PLC Tuesday said its first-half pretax loss narrowed to USD30.6 million from GBP40.1 million in the corresponding period last year, as it undertook measures to cut operating costs.
However, Origo also said the net asset value of its portfolio declined by 33% during the six months to June 30. Overall, Origo reported a net asset value of USD90.0 million at the end of June, compared with USD135.0 million at the end of 2013. Origo blamed depressed prices for commodities such as coal, concerns over the outlook for Chinese growth and political uncertainty in certain territories in which its investments are located.
"The board's primary aim at this time remains to monitor the portfolio and, in due course, to facilitate the realisation of assets and the distribution of capital to shareholders in an orderly fashion," Origo said in a statement.
The private equity investor said it is continuing to engage with its investors as it looks to finalise proposals to update its management structure, investment policy, asset realisation programme, and management incentive plan.
"Discussions are progressing and we remain committed to putting our proposals to a shareholder vote shortly," Origo said.
The company said it is cautious about the remainder of the year, citing macroeconomic uncertainties.
"The prospects for the Chinese economy remain finely balanced, with recent disappointing economic data leading to speculation of a potential stimulus package. In Mongolia, despite some apparent progress in resolving the disputes in respect of Oyu Tolgoi, the government's commitment to establishing an attractive environment for foreign investment remains unproven. International commodity markets also continue to remain depressed. All of these factors currently limit our ability to generate value from the portfolio in the near term," Origo said.
Origo shares were Tuesday untraded, quoted at 7.875 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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