30th Nov 2016 11:33
LONDON (Alliance News) - Shares in Sacoil Holdings Ltd fell Wednesday after it warned of a drop in net asset value and a swing to a loss per share for its half year to the end of August.
Shares in Sacoil were down 14% at 0.75 pence.
The company is pursuing the recovery of USD19.1 million owed to its by Transnational Corp of Nigeria PLC after the termination of its participation in the OPL281 licence in Nigeria, it said. Sacoil's legal counsel has estimated this matter will be resolved in the first half of 2018 and Sacoil will recognise an impairment of ZAR48.1 million as a result of this in the half.
Sacoil noted that its Lagia oil field in Egypt had performed below expectations, and the financial performance of the asset was also hit by falling oil prices and exchange rate movements, meaning Lagia has contributed lower than expected revenue.
Furthermore, the company said its results will be hit by the recovery of the South African rand against the dollar in the first half.
As a result of these factors, Sacoil said its basic loss per share for the half year is expected to be between 6.76 cents and 6.79 cents, down from earnings per share of 0.32 cents in the previous year.
Its net asset value per share as at the end of August is expected to be between 19.58 cents and 22.39 cents, compared to 28.11 cents at the end of February.
Sacoil said it expects to release its interim results later Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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