SINGAPORE (Feb 6): Magnus Energy, the oil & gas company which is seeking to diversify into biofuel production, reported 2Q losses narrowed to $0.9 million from $1.4 million a year ago.
Revenue fell 6.8% to $4.07 million from $4.37 million but cost of sales increases 1% to $3.46 million. Gross profit margin decreased to 15% in 2Q18 from 21.5% in 2Q17 mainly due to absent of revenue from wastewater segment which contributed higher profit margin.
Share of results of joint ventures swung to a loss of $161,000 from income of $512,000.
Magnus Energy says the overall performance of its core Mid-Con Group which provides oilfield equipment supplies and services, remains weak in 2Q18.
Meanwhile, the company’s wholly-owned subsidiary, Malaysia-based MEG Management is pushing ahead to complete the micro-algae cultivation plant and also has plans to build its own oil crushing facility.
The first revenue from microalgae cultivation project is expected to be recorded in the financial year ending June 30, 2018.
The group is also actively pursuing collaborative and funding opportunities globally as part of its diversification efforts to minimise its reliance on its core business.
Shares in Magnus Energy close 0.05 cent lower at 0.1 cent on Tuesday.
