LONDON (Alliance News) - InfraStrata PLC on Monday said its loss widened in its most recently ended financial year on the cost of the development of the Islandmagee storage gas project in Northern Ireland.
InfraStrata shares were trading 9.1% lower on Monday at 1.10 pence each.
The company said its pretax loss widened in the year to the end of July to GBP963,413 from GBP783,459 reported the year before, due to higher administrative expenses.
InfraStrata did not generate any revenue in either year as it currently develops the Islandmagee project.
Early in 2018, a concept feasibility study by construction engineering company Costain Group PLC confirmed that the project could be technically viable.
However, InfraStrata said the economic and commercial viability of a project with a total gas storage capacity of 450 million cubic meters is challenging when the daily accessible market in Northern Ireland is only 7.3 million standard cubic meters a day in the winter and 3.3 million standard cubic meters daily in the summer.
Looking ahead, the company said it expects an increased market demand to arise via the reversal of the Scotland Northern Ireland gas pipeline, which is currently only incoming to Northern Ireland.
"We are a very different organisation today compared with a year ago, and we are in a very different position both technically and commercially with the Islandmagee gas storage project," said Non-Executive Chairman Graham Lyon.
"We look forward to another positive year for the company," added Graham.