Sector News

Atlas weighs up joint ventures amid “prudent” cost-cutting

September 17, 2015

Africa-focused energy service company Atlas Development said today it had been approached by “a number of parties” about potential joint ventures.

It added: “Additionally, there are a number of businesses which require the expertise that we can offer as regards restructuring and delivering an international standard offering.

“The board is assessing a number of opportunities in this context in jurisdictions which are newly opening up for oil and gas, where our ability to operate in challenging environments is recognised and valued.

“Furthermore, with our primary London listing and dual listing in Kenya, the company is seen as having strong credentials and, therefore, an attractive operational partner.”

Reporting half-year results, Kenya-based Atlas said a mixed economic and operational environment in East Africa meant it was currently focused on “prudent” cost-cutting and streamlining initiatives.

Chairman Ian Mann added: “With capital in the bank and a significant asset inventory there remains opportunity, both within Africa and potentially beyond.

“In this vein, the board is in discussion with a number of asset financing banks with regards to potential acquisitions and expansion opportunities.

“The board understands the frustration of shareholders during this period but is working tirelessly to adapt and improve the situation to generate revenue.

“The pipeline of opportunities remains in place, although conversion timings are hard to predict in the current environment.

“With cash at bank of $6.1million, a highly experienced proven operational team, a strategic plan in place and prudent cost management, the Company appreciates continued shareholders support as we look to rebuild value.”

A reduced contract base and restructuring costs led to first half losses of $2.6million on turnover in line with expectations at $11.5million.

By Keith Findlay

Source: Energy Voice

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