LONDON (Alliance News) - Shares in Rurelec PLC fell Monday as it said there will be a "major" shut-down of a steam turbine at its southern Patagonian power plant in Argentina.
Shares were 29% lower on Monday at a price of 0.50 pence each.
The plant, operated by Energia del Sur SA, has been running on reduced output since September 2017 due to the failure of some turbine blades.
Maintenance work has been delayed, Rurelec said, because of CAMMESA's lack of cash - CAMMESA is the regulator and administrator of the Argentine electricity market which had agreed to loan EdS money to carry out the work.
However, CAMMESA has now provided EUR1.1 million to EdS, meaning it can now start work. This will begin mid-October, finishing around two months later.
The full work will require USD6.3 million from CAMMESA, but Rurelec said it is possible the regulator will be further delayed in funding this.
Turning to its own position, Rurelec said it remains "severely constrained" while the plant runs on lower output.
EdS owes money to Rurelec, and the latter said should the plant get back up and running at full capacity it will be more likely EdS can start repaying some of the cash, but this is not certain. As a result, Rurelec is looking at other funding options.
Rurelec (RUR)