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(Alliance News) - RA International Group PLC warned of a USD10 million revenue hit due to a wave of jihadist attacks in northern Mozambique where the construction and support services provider has operations.
The Cabo Delgado province has seen attacks from local insurgents in recent months and RA Chief Executive Officer Soraya Narfeldt on Monday noted there has been a "further escalation" over the past few days.
"Given the nature of this escalation, we have prioritised the safety and security of our staff, including the evacuation of our people from the area," Narfeldt said.
"These security concerns, compounded with the impacts of Covid-19 and extreme weather, have led to delays to the overall energy related project in the region and to the suspension of our contract to build and operate an 1800-person camp."
RA International expects delays to the project to hurt its financial performance. It may mean that USD10 million worth of revenue will only be registered in a "later financial period". The company posted USD69.1 million of revenue in 2019.
RA International shares were 16% lower at 41.20 pence each in London on Monday morning.
Dozens of people were killed in coordinated jihadist attacks in northern Mozambique's Palma town, AFP reported on Monday.
AFP said that on Wednesday last week, an unknown number of militants began attacking Palma, a town of around 75,000 people in the province of Cabo Delgado that is home to a multi-billion-dollar gas project being built by France's Total SE and other energy companies.
By Eric Cunha; ericcunha@alliancenews.com
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