Andalas Energy posts much wider loss as it pivots focus

Indonesia-focused upstream oil, gas and power company Andalas Energy and Power announced its preliminary results for the year ending 30 April on Friday, a year in which it transitioned its focus towards Indonesia, targeting opportunities arising from the country’s electrification shortage.

The AIM-traded firm said during the period, it made a loss of $4.67m, widening from $122,000 in the prior year.

It put this down to expenditure incurred while evaluating a number of assets in Indonesia, which culminated in the farm-in agreement on TOE, and in developing its integrated gas to power business that has resulted in an increase in the costs of the business in the year.

Evaluation work totalled $2.04m during the year whilst the work in connection with the developing the integrated gas to power business resulted in costs of $1.15m, the board said.

As a non-core asset, the board also decided to impair the group’s investment in Peelwood which resulted in a $179,000 loss, against a $219,000 gain in 2015.

As at year end Andalas held a cash balance of $290,000, down from $354,000 at 30 April 2015.

“With the signing of a transformational agreement with Pertamina and the assembly of a truly industry leading team to deliver our strategy, we are successfully transitioning into a leading Indonesian-focused energy company,” said chairman Paul Warwick.

“The commencement of the identification of proven stranded gas fields for IPPs from Pertimina’s portfolio, in tandem with considerable progress being made towards advancing the TOE work programme, has created a clear path to sustainable cash flow generation and long term shareholder value creation.”