SINGAPORE - Catalist-listed Magnus Energy on Friday (Aug 30) posted a fourth quarter net loss of $16.2 million, widening from a loss of $13.5 million a year ago.
This was due to its fiscal 2018 winding down of its oil and gas equipment distribution segment in South-east Asia and Australia, tempered by one-off gains.
Loss per share stood at 0.13 cent, from 0.12 cent a year ago. No dividend has been declared, unchanged from a year ago, the group said in a regulatory filing just after midnight.
Meanwhile, fourth quarter revenue fell 23.4 per cent to $4.5 million, from $5.9 million a year ago. The group's other income saw one-off gains from the disposal of its joint venture disposal in India for around $0.6 million, the sale of oil and gas equipment inventories for around $0.8 million, and dividend income of about $0.1 million.
For the full year ended June this year, Magnus Energy's net loss widened to $17.5 million, from $14.8 million a year ago. LPS was at 0.14 cent, from 0.13 cent a year ago.
Revenue dropped 7.2 per cent to $17.6 million, from $18.9 million a year ago. Out of that amount, around $12.2 million was from the group's United States subsidiary, with the remaining contributed from the disposal of remaining inventories in Australia and Singapore subsidiaries.
On its outlook, the group said its focus remains in the energy sector and its oilfield equipment supplies and services segment with principal subsidiary Mid-Continent Equipment Inc in the US.
The recent disposal of the business in South-east Asia has also enabled Mid-con Group, an indirect subsidiary, to rationalise its business and costs structure - allowing it to focus its resources and efforts into territories such as the US.
The group said it is expecting funds from the capital reduction in Mid-con Group, and that it intends to use the funds as working capital.
Magnus Energy also said that it has provided for an impairment loss of $12.9 million for a microalgae crude oil production plant that it failed to bring into production phase. This was due to funding, contamination and low growth rates of microalgae, among other reasons.
It had initially embarked on the pilot commercialisation of microalgae crude oil with the objective of providing a renewable source of energy.
"However, as these are exploratory and require further funding, the group continues to explore other options for the resolution of these issues," it added.
The group also said it is exposed to movements in the US dollar and the Australian dollar as a result of operations in the US and Australia. Thus, the strengthening or weakening of these currencies may have "significant impact" on the group's future results.