Thursday, November 19, 2015

Loss making Atlas ventures into manufacturing


Atlas Development CEO Carl Espery. The company expects to make a Sh250 million pre-tax loss in the first half of the year. PHOTO | FILE
Atlas Development CEO Carl Espery. The NSE listed UK oil logistics firm is diversifying into manufacturing to mitigate low crude oil prices. PHOTO | FILE 
By BD REPORTER

NSE listed UK oil logistics firm Atlas Development and Support Services is diversifying into manufacturing to mitigate low crude oil prices.
Atlas said it has created an industrial division to broaden sector focus and diversify revenue streams.
“As part of the Company’s first project within the industrial division, Atlas has signed an acquisition agreement to acquire East Africa Packaging Holdings Limited (‘EAPH’),” the company said in a statement on Reuters website.
EAPH is a company established to build a new glass bottle manufacturing facility 45 kilometres north of Addis Ababa, Ethiopia.  
“Recent months have been highly volatile and difficult for our business, particularly in Kenya.  We appreciate our shareholders’ patience as we combat the down-turn in the oil and gas services sector and focus on more profitable sectors,” the firm said.
The firm sunk deeper into losses after it recorded a loss of $9.6 million (Sh1 billion) for the full-year ended June compared to $1.4 million (about Sh150 million) posted  during the same period last year.
It said the loss was as a result of reduced exploration activity and a depreciating shilling, which had adverse effects on its profit.

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