GEV says a 1000pc half-year loss blowout isn’t relevant anymore
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Global Energy Ventures’ half-year result isn’t “relevant” because of a massive transformation the business has undergone, says chairman Maurice Brand.
The company posted a 1000 per cent blow-out in its half-year $2.9 million loss to, and revenue dropped 55 per cent to $35,000.
Until January last year, the company (ASX:GEV) was an oil business trading under the name TTE Petroleum.
It gave that away because the money it was able to make from US and Australian oil and gas operations consistently fell from 2015 to 2017.
It sold the US assets in December.
Global Energy Ventures is now a small-volume compressed natural gas (CNG) shipper. It only re-complied with ASX listing rules in December, and recapitalised in January this year.
It finished the year with $2.8 million, which has since been bolstered by a $6.75 million capital raising that valued its shares at 40c.
The company opened on Thursday down 1.3 per cent at 37c.
“The opportunity in the space for smaller projects to transport gas from a resource to a market is certainly available and the more work we do the more convinced we are that there are multiple global opportunities to do so that are under the radar of the larger LNG projects,” Mr Brand told Stockhead.
“We’ve been following the smaller LNG and CNG space since the mid 80s and it would seem to me that the time is now right to commercialise small projects.”
Mr Brand joined GEV in late 2016 from LNG Limited, the company he founded.
The company is currently focused on shipping CNG in the Atlantic and to India.
“We believe CNG can offer a solution for smaller volumes into different locations around India. We’re feeding into that growth that’s been projected for that country.”
In December, Global Energy Ventures bought the Calgary-based Sea NG Corporation, a CNG marine transport technology company, for $US585,000 in cash, 4.1 million shares and 15.9 million performance shares.