Thursday 28 Mar 2024
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KUALA LUMPUR: Reach Energy Bhd, which is in the midst of securing a qualifying acquisition (QA), saw its net loss for the 12 months ended July 31, 2015 (12MFY15) narrow 61.3% to RM10.98 million from RM28.38 million it reported a year ago.

In its quarterly report to Bursa Malaysia yesterday, the oil and gas (O&G) special purpose acquisition company (spac), which changed its financial year end to Dec 31 from July 31, said the loss was mainly due to expenses like management team remuneration, finance costs, travelling costs and listing expenses.

As it has yet to complete its QA, Reach Energy’s main source of income, which amounted to RM27.6 million in 12MFY15, was derived from interests earned from its fixed deposits (2014: RM331,228)

Commenting on its prospect, the group said it has identified and is in the process of pursuing several “attractive” opportunities. “The company continues to actively seek control of attractive development and production assets as QA,” it added.

The group has a three-year timeframe to secure a QA, and as at 12MFY15, its remaining cash and bank balances stood at RM767.28 million, while accumulated losses stood at RM18.87 million.

Upon its listing in August last year, Reach Energy managed to raise RM750 million; 94.75% of that was earmarked for  QA, with the remainder 5.25% for working capital.

Earlier this year, Reach Energy chief executive officer and managing director Shahul Hamid Mohd Ismail told local media that the spac is optimistic about completing its QA this year, and has shortlisted 10 potential assets to pave its way into the O&G exploration and production sector.

 

This article first appeared in digitaledge Daily, on September 10, 2015.

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