16th Mar 2020 10:15
(Alliance News) - Star Phoenix Group Ltd on Monday a posted narrowed interim loss due to lower costs and expenses, but warned on the possibility of operations winding down if the sale of its Trinidad operations to Chinese firm LandOcean Energy Services Co Ltd does not complete.
The stock was 11% lower at 1.20 pence each on Monday morning in London.
For the six months to the end of December, the oilfield services firm - formerly known as Range Resources Ltd - posted a pretax loss of USD8.2 million, narrowed from USD15.1 million loss in the comparative year ago period. However, revenue from continuing operations fell to USD31,579 from USD619,374.
First half operating expenses fell to USD80,415 from USD836,118.
As at the end of December, Star Phoenix had cash of USD2.3 million versus USD3.2 million a year ago. Total net liabilities at period end stood at USD47.0 million.
No dividend was declared.
Net oil production for the interim period was 95,435 barrels, around 519 barrels of oil per day lower than the comparative period in 2018.
Post period end, Star Phoenix signed a subscription agreement with Thesolia Ltd to raise around GBP520,000 through the issue of 23.6 million shares at 2.21 pence each. The funds are expected to be received by March 31.
Looking ahead, the company said: "If for any unforeseen reasons the transaction with LandOcean is abandoned, there will be a material uncertainty that may cast a significant doubt about the group's ability to continue as a going concern, and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business."
In November 2019, Star Phoenix announced the sale of Range Resources Trinidad to LandOcean. Under the sale agreement, LandOcean is required to pay USD2.5 million to Star Phoenix in tranches.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
STA.L