Advertisement

Infastrata takes big charge on storage facility

AIM-listed InfaStrata fell heavily on Monday after it announced a big loss due to faltering plans for its troubled gas storage facility.

AIM-listed InfaStrata fell heavily on Monday after it announced a big loss due to faltering plans for its troubled gas storage facility.

The UK-focused firm reported a loss for the year of £19.72m, compared to a 2011 profit of £4.31m.

Much of this was related to a charge of £18.42m against Portland, its large gas storage project in Dorset.

Advertisement - Article continues below

The firm said continuing poor market conditions for seasonal gas storage facilities meant it was unlikely it could realise the project in the short term.

"As a board, we consider it is appropriate to take a conservative approach to the applicable accounting treatment of the project and the carrying value of the asset in the company's account," the company said.

"This has resulted in a substantial reduction in the financial asset value of the project cost carried on our balance sheet."

The firm is now looking at whether the site could be used as a salt solution mining facility.

"The location adjacent to a deep water port makes the export of salt to UK and international markets potentially attractive," it said.

"If such a project could be established in the shorter-term it would enable the Company to retain the option for gas storage in the longer-term."

The news pushed the shares down 10.2%

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020