LONDON (Alliance News) - Rurelec PLC on Friday said its loss narrowed in 2017 as it withdrew from Peruvian assets and reduced expenses.
The electricity utility company said its pretax loss narrowed to GBP5.8 million in 2017 from the GBP9.3 million reported a year earlier.
Back in 2016, the company reported a revenue of GBP95,000. In 2017, it did not generate any revenue as planned maintenance of the turbine at Rurelec's joint venture asset was delayed due to Argentinian electricity market administrator CAMMESA not being able to provide agreed loan finance.
During the year, the company said it "took efforts" to reduce costs. Write-downs in the carrying value of certain group assets totalled GBP1.7 million compared to GBP10.5 million of write-downs the prior year.
Administrative expenses reduced year-on-year to GBP2.1 million from GBP2.4 million. However, Rurelec booked a GBP2.6 million loss on foreign exchange, having reported a GBP1.2 million gain in 2016.
The company sold its Peruvian assets in December due to the continuing liquidity problems. The transaction was completed in January and therefore Rurelec expects to see a GBP1.3 million gain in 2018.
"During 2017 the group has continued to reduce costs, and pursue asset sales," said Executive Director Simon Morris. "As in 2016, liquidity was a major issue for the group during 2017."
Shares in Rurelec were trading 6.7% lower at 0.70 pence each on Friday.