Magnus Energy Q2 loss narrows to S$1.2m

MAGNUS Energy Group saw its net loss narrow to S$1.2 million for its second quarter ended Dec 31, 2019, from S$1.9 million a year ago.

This came as the oil and gas firm saw a drop in its cost of sales and a rise in other operating income for the quarter, according to its financial results released on Tuesday just after midnight.

Loss per share stood at 0.008 Singapore cent for the quarter, from 0.006 cent a year ago.

Revenue for Q2 fell 34.3 per cent to S$2.9 million, from S$4.5 million a year ago due to the group's winding down of its oil and gas segment in South-east Asia since end-2017.

No dividend was declared for the quarter, unchanged from a year ago.

For the half-year ended Dec 31, 2019, net loss widened to S$1.8 million, while revenue was down 27.2 per cent to S$6.9 million.

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For the next 12 months, the group intends to dispose of redundant and unproductive assets in an orderly manner. This includes its land in Australia and Singapore to provide cash for operating purposes and to reinvest into new businesses to be identified.

The group said its goal is to grow its Mid-Continent Equipment Inc (USA) subsidiary by bringing partners in to focus on higher-value business opportunities. It plans to work with partners able to bring financing options and valued experience to specifically targeted projects for both Mid-Content Equipment Inc (USA) and the group.

In a separate announcement on Tuesday, the group clarified that its recent disposal of Mid-continent Environmental Protection Waste Management Sdn Bhd is a non-disclosable transaction which does not require an announcement or shareholders' approval.

The Singapore Exchange had in January said it was probing the transaction for possible breaches of the Catalist rules. As the disposal involved negative relative figures under Catalist rule 1006, the firm should have consulted SGX RegCo on the applicability of Chapter 10 of the Catalist rules, but it did not do so.

Trading in Catalist-listed Magnus Energy's shares has been suspended since August last year.