Efora Energy reduces losses despite AfricOil’s woes
The oil and gas company said the loss was expected to decline by between 75% and 84%
Efora energy, formerly known as Sacoil, said on Thursday its basic headline loss per share for the six months to end-August was expected to decline as much as 84% from the previous year, largely due to reduced exchange-rate losses.
The oil and gas company, which will release its results later on Thursday, said the loss was expected to decline by between 75% and 84%, or to between 1.06c and 1.66c. Net asset value per share was expected to decrease by between 20% and 30%, to between 19.14c and 21.24c.
The weakening of the rand resulted in foreign exchanges gain of R500,000, compared with 2016’s R62m, the company said in a statement. Future developments within the currency markets would continue to affect the group’s operations and assets.
The acquisition of a controlling interest in AfricOil was completed in May 2018, and the three months of results are included in the current period, with an expected loss of R20m. Sales in the market were affected due to changes in the competitive market, with the company also suspending its Zimbabwean operations in order to allow a refocusing of its business model in that country, the statement read.
At 9.43am on Thursday, Efora’s share price was unchanged at R1.84, having gained 581.48% so far in 2017.