Continued weakness in metal prices and sharply lower oil prices are the main culprits behind the sharp drop in net earnings posted in the 6-month period ended June 30 by Westmin Resources.
Despite expanded production from the new H-W mine and higher oil and gas production, the company recorded net earnings of $1.2 million, a substantial decrease from the $17.7 million posted in the comparable period of 1985.
Gross revenues for the first six months of this year totalled $98.6 million, an increase from the $88.6 million recorded in last year’s comparable period.
After provision for preferred dividends, there was a loss of 18 cents per common share compared with earnings of 26 cents for the first six months of 1985.
In the second quarter, the company had a net loss of $281,000 or 12 cents per common share compared to net earnings of $8.3 million or 12 cents a share in last year’s comparable quarter.
Cash flow amounted to $26.09 million versus $44.9 million in the comparable 1985 half. As of June 30, working capital stood at $121.7 million compared to $87.5 million at the 1985 year end. The latest figure includes approximately $121 million in cash and short-term investments.
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