Rurelec (RUR)


Rurelec widens H1 pretax loss as revenue falls

Rurelec has booked an H1 pretax loss of £2.1m, from a loss of £40,000 a year earlier. Revenue was £4.3m, from £6.1m.

Commenting on the results, Peter Earl, Rurelec's Chief Executive, said:

"A great deal of effort during the first half of the year was spent ensuring that we reached a final settlement with the Bolivian Government.

"The low level of the settlement was a highly unsatisfactory result for the Company. Nonetheless, we have been busy during this time to develop our two projects in Chile, whilst we have largely completed the construction of our first run-of-river hydro plant in Peru with another three under development.

"We are now finalising our partnership arrangements in Latin America to permit a more rapid roll-out of new generation capacity with large co-investors.

"Operationally we have had a good year in Argentina only spoilt by the currency devaluation in January. We continue to believe that the prospects for Argentina are excellent."

Operational and Post Half-Year Highlights:

· Full settlement with Government of Bolivia for US$31.5 million of compensation received on 3rd June 2014 along with US$25.5 million repayment of Birdsong loan and accrued interest.

· Performance of the Energia del Sur plant in Patagonia, Argentina is up year on year in Argentine Pesos, while the translation into sterling is down due to the Peso devaluation during 2014.

· £2.3 million loss for the period is largely due to foreign exchange losses in Argentina of £2.8 million on devaluation of the Argentine Peso on our asset in Comodoro Rivadavia

· Revenues in Argentina still performing well locally with Argentine Pesos Arg $110 million ( 2013: Arg $100 million).

· Peru - Canchayllo run-of-river hydroelectric plant (5.3MW) reaches final stages of construction.

· Peru - second hydro plant to start construction in Q4 of 2014.

· Chile - two projects (295 MW) approaching completion of development and financial close in the first quarter of 2015.

· West African project for IPC providing engineering and development services showing continued value of IPC's experience.

At 9:26am: (LON:RUR) Rurelec PLC share price was -0.38p at 5.25p