30th Jun 2015 10:12
LONDON (Alliance News) - Rame Energy PLC Tuesday said its pretax loss widened in 2014 after revenue fell and it re-focused its efforts to becoming an independent power producer, but said it expects revenue to be "significantly greater" in 2015.
The renewable power producer reported a USD5.0 million pretax loss in 2014, widening from a USD1.5 million loss in 2013 as revenue fell to USD2.2 million from USD3.6 million as the company focused on the advancement of its own pipeline of energy projects, but said it expects revenue in 2015 to be "significantly greater" than in 2014.
The company's cost of sales significantly rose despite the fall in revenue to USD1.3 million from USD92,802. Costs totalling USD341,488 related to the company's initial public offering in April and a USD433,218 share of a loss of an associate also contributed to the wider loss.
"Financial performance has not been as initially expected but this is has been attributable in the main to project slippage and not the fundamental loss of opportunity and it is clear that revenues in all key business areas are now improving," said Chief Executive Kevin McNair.
One of the company's biggest operational activities in 2014 was the construction of the Raki/Huajache wind projects in Chile in partnership with Santander. Although the project faced delays, Rame said it has "provided a strong foundation" for further developments downstream in this "key region for wind power in Chile", said the company.
"Commencement of power sales is now imminent and whilst the delays to the projects have been frustrating, the fact remains that Rame has demonstrated its ability to develop, finance and build two substantial on-grid wind projects in a challenging part of the country, one of only three companies to do so," said Rame.
Rame's Beco Solar division, which deals with the installation of rooftop and ground mounted solar panels, remains focused on commercial and industrial rooftop installations in the 20 kilowatt to 150 kilowatt range where tariff support "remains strong and our interests are most closely aligned with government policy", it said.
"Rame has, through hard work and despite some significant challenges, now realised its ambition of becoming an independent power producer," said Chief Executive Tim Adams.
"We have yet to achieve the momentum we need both in the business and the market to really deliver the group's underlying potential but we have made significant progress and strongly believe that the outlook remains positive if the capital can be sourced to support Rame's ambitious objectives," he added.
At the end of 2014, the company reported a cash balance of USD230,033.
Rame shares were down 3% to 8.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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