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(Alliance News) - Ceiba Investments Ltd on Monday reported a fall in net assets in the first half of 2019 and said poor relations between Cuba, where it has investments, and the US has hurt interim performance.
Total net assets at June 30 declined by 6.7% to GBP151.1 million from GBP162.0 million at the end of December. Per share, net asset value fell by the same 6.7%, to 109.8 pence from 117.7p.
Shares in Ceiba were untraded in London on Monday afternoon, last quoted at 78.39p each.
Ceiba said: "The group is operating in an increasingly challenging political environment as regards the relations between Cuba and the US Administration and this continues to have a negative effect on the performance of the group."
Ceiba added that "aggressive" new measures by the US government against the Cuban economy deteriorated the "economic and political environment" that the firm operates in.
Looking ahead, the company expects the tricky market conditions to continue and explained that fuel shortages in Cuba could also hurt its future performance.
Ceiba said: "Management expects that the tough economic and political headwinds faced by Cuba in recent months will persist into the second half of 2019, and that the local market conditions in which the group operates will remain very challenging. In addition, fuel shortages and other logistics problems, if they continue or worsen, may have a more pronounced impact on the pace of construction of our projects."
More positively however, the company said it is encouraged by the "slow-but-steady programme of modernisation" being implemented by the Cuban government.
By Eric Cunha; ericcunha@alliancenews.com
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