10th Mar 2015 14:16
LONDON (Alliance News) - Trinity Exploration and Production PLC Tuesday said it has sold surplus casing and tubing to three companies for USD3.5 million, but said the fall in casing and tubing prices will mean the sale will result in an accounting loss on the sale of USD1.3 million.
Trinity has sold the surplus casing and tubing to Rigtech Services Ltd, Blanket Security Ltd and Well Services Petroleum Co Ltd for a combined total of USD3.5 million. Trinity said the proceeds from the sale will reduce amounts owed to the three buyers for services provided to the company.
"The proceeds of the transaction will be used to reduce amounts owing to purchasers in relation to services provided by the purchasers to the company. The fall in the casing and tubing market internationally means that the sale will result in a loss on sale of USD1.3 million for accounting purposes," said Trinity.
The rationalisation of this excess inventory has allowed Trinity to consolidate its warehousing and inventory storage thereby achieving significant leasehold rental savings, the company added.
Trinity shares were down 4.4% to 22.00 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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