LONDON (Alliance News) - Trading Emissions PLC Monday said its pretax loss widened in its first half as it failed to achieve revenues and continued to face problems from its Bionasa operations in Brazil.
The closed-ended investment company, which operates in environmental markets, said its pretax loss widened to GBP6.3 million for the six months ended December 31, 2013 from GBP4.3 million in the same period a year earlier, as the company failed to post revenues compared with GBP7.3 million in revenues during 2012.
The company said that its operating loss widened to GBP6.3 million from GBP4.4 million as lower net change in the fair value of its financial assets, together with the lack of revenue during the period, offset improved net changes in its inventory value during 2013.
Trading Emissions said its net asset value fell 26% to GBP55.9 million from GBP75.1 million, and its net asset value per share fell to 22.38 pence from 30.08 pence during the period.
The company said it has received serious expressions of interest for parts or all of its Element Markets business in the US and for its investment in EWG Slupsk in Poland, both of which it is considering. The company noted that there is no assurances that the negotiations will be successful or that sales proceeds will approximate the latest carrying values.
Trading Emissions said TEP Solar is experiencing degradation problems at one of its solar plants, while its Bionasa investment in Brazil remains troubled, with operations stopped, multiple obligations in default, legal actions being taken against the company, and its chief executive refusing to communicate with Bionasa's non-executive directors or to hold board meetings.
In September 2013, the company wrote-down the value of its holding in Bionasa after announcing that the company was experiencing severe financial difficulties along with an ongoing arbitration process to resolve an ownership dispute.
At the end of the financial year, Trading Emissions also announced the sale of its existing stock of carbon credits and portfolio of 24 Emissions Reduction Purchase Agreements for no material consideration.
The company said in the coming months it will focus on progressing the EWG Slupsk and Element Markets processes; resolving the issues at Bionasa and TEP Solar, with a view to protecting the company's investments; and changing or even terminating the remaining ERPAs.
Trading Emissions shares were down 23% to 12.25, making it the top AIM faller Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Trading Emissions PLC (TRE)
