Atlas Development CEO Carl Espery. The NSE listed UK oil logistics firm is diversifying into manufacturing to mitigate low crude oil prices. PHOTO | FILE
What you need to know:
Atlas Development attributes the expected Sh250 million loss to the extended downturn in the oil sector which has delayed and in some cases resulted in cancellation of tenders.
Logistics company Atlas Development has announced that it expects to make a Sh250 million ($2.5 million) pre-tax loss in the first half of the year.
The firm, which is cross-listed on the Nairobi Securities Exchange (NSE) and the London Stock Exchange, is set to announce the results on or around September 15.
The company in a statement on Friday attributed the expected loss to the extended downturn in the oil sector which has delayed and in some cases resulted in cancellation of tenders.
Atlas is currently focused on servicing oil and gas, geothermal and mineral exploration companies.
The firm also said that foreign exchange translation would widen the losses, given the weakening of the Kenyan shilling.
The earnings will also be impaired by a Sh100 million ($1 million) restructuring cost incurred on staff redundancy. A further restructuring cost of Sh180 million ($1.8 million) is projected in the second half of the year.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
