PETALING JAYA (Mar 25): Reach Energy Bhd, the largest special purpose acquisition company (SPAC) listed on the local bourse, saw its net loss for the six months ended Jan 31, 2015 (1HFY15) widen 95.28% to RM4.84 million, compared to RM2.48 million in the corresponding period last year.

In a filing with Bursa Malaysia, Reach Energy’s revenue was RM12.31 million in the six month period this year, compared to RM67,000 in the previous corresponding period.

The company said it will only start generating operating income once it has completed its qualifying acquisition (QA). Its deadline for the QA is 2017.

Hence, its revenue was mainly derived from profit earned from shariah-compliant fixed deposit placements.

While awaiting its QA, it has incurred operating expenses of RM14.81 million, compared to RM2.55 million in the previous corresponding period, which resulted in a loss before tax of RM2.5 million.

“The major expenses were remuneration of management team, finance costs, traveling and subsistence, listing expenses and share-based payment reserve,” it said.

The company had raised RM750 million from its initial public offering. It aims to acquire and operate mature oil and gas fields.

“As at the date of this report, the company has identified and is pursuing several attractive opportunities within the region of interest,” it said on its QA prospects.

Reach Energy shares closed half a sen or 0.79% lower at 62.5 sen today, with a market capitalisation of RM798.64 million.