Efora to work on improving new assets
The fuels company also consolidates its shares on a 10-for-one basis
Fuels company Efora Energy, previously known as SacOil Holdings, will focus its energies on improving the performance of its newly acquired assets and looking for more acquisitions, says CEO Thabo Kgogo.
In October, the company consolidated its shares on a 10-for-one basis and so the current share price of 173c is close to the preconsolidation 17c.
Efora has made two acquisitions of South African fuel distributors in the past few months, AfricOil in March and Belton Park Trading in October.
The integration of AfricOil had resulted in some one-off costs, but Kgogo said he was confident it would deliver in line with expectations.
Revenue from the Lagia oil field in Egypt was affected by delays in drilling a pilot well, which is intended to confirm the best way to complete well and steam injection. Efora has focused on cutting costs at Lagia, and has reduced its operating loss to R7.7m in the six months to August from R20.7m in 2016.
For the six-month period Efora cut its headline loss to 1.36c per share from 6.77c per share previously. Cash flow from operations was a negative R31.3m. It intends to seek support from its shareholders for a rights issue to repay debt.
Efora remains locked in litigation stemming from transactions by previous management, including an action to recover R115.8m it is owed by Encha Energy.
Efora hoped to resolve this matter by the end of December, Kgogo said.
Litigation with Transnational Corporation of Nigeria (Transcorp) over a $12.5m refund of fees Efora paid for participation in OPL 281 is continuing, but Transcorp has presented alternative proposals to Efora.
This matter was expected to be resolved by the second half of 2018, Kgogo said.