27th Sep 2013 13:21
LONDON (Alliance News) - Rurelec PLC Friday said it swung to a pretax loss in the first half of the year as administration expenses increased, and said it expects a decision on the compensation it is due from the Bolivian government by the end of the year.
In the half year ended June 30, the company posted revenues of GBP6.1 million, down from GBP6.9 million in the previous year, and it swung to a pretax loss of GBP40,000 from a pretax profit of GBP463,000.
The power generation company said that increased administrative expenses in Argentina and the UK contributed to its losses, although it didn't provide a reason for the increase.
The company spent the first half fighting to get compensation after the Bolivian government last year nationalised its power plant in the country by force in 2010. The Permanent Court of Arbitration in the Hague heard the case in April and the company now expects a decision, including how much compensation it is due, by the end of this year.
It has already begun developing new capacity to replace the Bolivian power plants that were nationalised in 2010.
Shares in Rurelec were trading down 4% at 11.25 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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