By Adria Calatayud
Shares in Rurelec PLC fell Monday after the company said that it will continue to face significant working-capital pressures until Argentina’s government resolves challenges caused by changes to spot energy tariffs for electricity.
The London-listed power producer said its cash position as of June 21 was 289,000 pounds ($401,219).
Rurelec expects to book a write-down on the carrying value of its assets of between $2.5 million and $10 million in its 2020 results. As a result, the company expects to report a loss of between GBP3.7 million and GBP11.7 million for 2020, which compares with a loss of GBP4.4 million for 2019.
The company’s loss before impairments for 2020 is expected to be around GBP1.7 million compared with a loss of GBP2.4 million for 2019.
Rurelec said it has been granted an extension to the date by which its annual accounts can be published to Sept. 30, as it is facing challenges due to Covid-19.
Shares at 1354 GMT were down 8.7% at 0.53 pence.
Write to Adria Calatayud at email@example.com
View more information: https://www.marketwatch.com/story/rurelec-shares-fall-after-warning-on-working-capital-pressures-271624888904