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KTL Global narrows Q2 net loss; considers options to exit watch list
OIL and natural gas company KTL Global narrowed its net loss to S$2.17 million, or 0.9 cents per share, for the second quarter ended Dec 31, from a net loss of S$2.78 million, or 1.16 cents per share, a year ago.
This was attributed to a "decrease in operating expenses, other operating income and share of results of an associate, partly offset by increase in revenue, other operating expenses and finance costs", KTL Global said.
For the three months ended Dec 31, the group's revenue was S$9.3 million, 15 per cent higher than the S$8.1 million in the year-ago period.
However, finance costs for the second quarter also rose 8 per cent to S$345,000, mainly due to an increase in the cost of borrowings from fixed rate loans and bills payables, as well as the increase in the Singapore Interbank Offered Rate (Sibor), the group said.
No dividend has been recommended for the half year ended Dec 31.
In an extraordinary general meeting held on Thursday, 56.38 per cent of the voting shares present approved the issuance of 26 million new shares to executive chairman Tan Tock Han. This was done to repay a S$1 million loan from Mr Tan to meet working capital requirements. The company and Mr Tan have agreed that the allotment of new shares will be "full and final repayment of the debt excluding any interest".
Separately, mainboard-listed KTL Global announced said its directors are considering the options of either undertaking a share consolidation or transferring to a Catalist in order to resolve its breach of the Mainboard's minimum trading price requirements.
KTL Global is currently on the Singapore Exchange's (SGX) watch list because its shares have been trading below 20 Singapore cents and its market capitalisation is below S$40 million. If the company does not transfer to the Catalist board, it must raise its stock price and market cap above those thresholds within 36 months from June 5, 2017 or it will be delisted from the Mainboard.
Shares of KTL Global traded 10.7 per cent, or 0.3 Singapore cent higher to close at 3.1 Singapore cents on Thursday. The company currently has a market cap of S$7.5 million.