{"id":3831,"date":"2015-09-18T19:50:43","date_gmt":"2015-09-18T19:50:43","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=3831"},"modified":"2015-09-18T19:50:43","modified_gmt":"2015-09-18T19:50:43","slug":"loss-making-atlas-development-focuses-ethiopia-tanzania-activity-kenya-reduces","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/loss-making-atlas-development-focuses-ethiopia-tanzania-activity-kenya-reduces\/","title":{"rendered":"Loss Making Atlas Development focuses more on Ethiopia and Tanzania as activity in Kenya reduces"},"content":{"rendered":"

Nairobi securities exchange listed company Atlas Development has said it is now eyeing the Ethiopian and Tanzanian markets as oil exploration in Kenya and the Turkana region witnesses a significant reduction.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

According to the company business in Ethiopia has been improving with contracts in the potash project where developers have been negotiating and have renewed as they look to advance their exploration and mining operations.\u00a0 <\/span><\/span><\/p>\n

\u201cThe Ethiopian business pipeline is also improving in the natural resource and infrastructure spaces.\u00a0 With a positive market dynamic and a growth in requirements for international standard support services the Board is hopeful that the Ethiopian operations will generate positive returns,\u201d the company says in a statement.\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

The company adds that despite agreements in place to provide support services across the delivery spectrum in Kenya revenue visibility is not easy to predict at this time.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Atlas development adds that although tenders are being offered by a number of parties throughout the East African region the Board believes that the terms being demanded from service providers are not sustainable.\u00a0 <\/span><\/span><\/p>\n

\u201cIndeed in a number of recent cases contracts were agreed but terms then adjusted by the clients, causing the work to be unprofitable and therefore unattractive to the Company,\u201d the statement continues.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Atlas also says it has conducted a full review of operations in Kenya and dramatically reduced costs and overheads to preserve the balance sheet whilst maintaining a presence to ensure the capabilities are in place to deliver these potentially transformational projects when the time arises or market sentiment changes.\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

In Tanzania, although the Company has a number of small contracts, the operations are heavily centred on the oil and gas sector where, as in Kenya, the general environment remains challenging.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

The company continues operations continue in Western Sahara.\u00a0 <\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Meanwhile <\/span><\/span>the Company reported comprehensive losses during H1 2015 of US$2.6 million, which included exchange rate losses of US$0.7 million (resulting from the 9% fall in the USD:KES exchange rate which heavily impacted the USD equivalent cash balances which were held in KES) and non-recurring restructuring costs of US$1.1 million.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Looking forward Atlas Development adds the Board has focused on the preservation of capital through prudent cost cutting and streamlining initiatives.\u00a0The board adds that\u00a0it is in discussion with a number of asset financing banks with regards to potential acquisitions and expansion opportunities.\u00a0 <\/span><\/span><\/p>\n

\u201cThe conclusion of any transaction due to market dynamics and the current valuations is more challenging but the Board, as I said, believes there remains opportunity.\u201d<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Nairobi securities exchange listed company Atlas Development has said it is now eyeing the Ethiopian and Tanzanian markets as oil exploration in Kenya and the Turkana region witnesses a significant … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":2754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[3410,809,832,955,990,1252,1574,1827,1881,2466,3622],"class_list":["post-3831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-atlas-development","tag-ethiopia","tag-exchange-rate","tag-gas","tag-geothermal","tag-kenya","tag-mining","tag-oil","tag-oil-price","tag-tanzania","tag-western-sahara","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/03\/Atlas-Development-2.png?fit=389%2C423&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-ZN","jetpack-related-posts":[{"id":2190,"url":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-support-services-lists-on-the-nairobi-securities-exchange\/","url_meta":{"origin":3831,"position":0},"title":"Atlas Development & Support Services lists on the Nairobi Securities Exchange","author":"Samuel Kamau Mbote","date":"December 17, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Nairobi-headquartered support services and logistics company Atlas Development & Support Services (ADSS or Atlas cross listed on the Growth Enterprise Market Segment ('GEMS') of the Nairobi Securities Exchange, having successfully raised KES 450 million (US$5 million) through a private placement to Kenyan investors. 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Atlas says\u2026","rel":"","context":"In "Elsewhere in Africa"","block_context":{"text":"Elsewhere in Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/elsewhere-in-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/03\/Atlas-Development-2.png?fit=389%2C423&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2112,"url":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-secures-first-contract-in-mozambique\/","url_meta":{"origin":3831,"position":2},"title":"Atlas Development secures first contract in Mozambique","author":"Samuel Kamau Mbote","date":"December 3, 2014","format":false,"excerpt":"African focused support services and Logistics Company Atlas Development & Support Services Limited has announced that, in line with its expansion strategy for East Africa, it has been awarded its first support services contract in Mozambique. The agreement, with an international oil company, underlines Atlas Development's increasing penetration into the\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/atlas-logistics.png?fit=389%2C260&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4151,"url":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-shuts-loss-making-kenyan-subsidiary\/","url_meta":{"origin":3831,"position":3},"title":"Atlas Development Shuts Loss Making Kenyan Subsidiary","author":"","date":"December 2, 2015","format":false,"excerpt":"Atlas Development & Support Services Limited has announced the decision to place its loss making Kenyan subsidiaries into liquidation by way of a Creditors Voluntary Liquidation following the downturn in the oil and gas industry, market adjustments and the failure of certain key clients to settle debts. \u00a0 Atlas Development\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/atlas.png?fit=509%2C322&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3161,"url":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-support-services-anticipates-h1-pre-tax-losses-2-5m\/","url_meta":{"origin":3831,"position":4},"title":"Atlas Development & Support Services anticipates H1 pre-tax losses of $2.5m","author":"","date":"July 17, 2015","format":false,"excerpt":"The Kenyan headquartered, African focused support services and logistics company Atlas Development has said the H1 pre-tax losses anticipated is\u00a0$2.5m from an expected turnover of US$11.0m in its latest six month period to 30 June 2015. \u00a0 Atlas attributes the loss to a slowdown in oil exploration in the regions\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/atlas-logistics.png?fit=389%2C260&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4431,"url":"https:\/\/www.oilnewskenya.com\/index.php\/confusion-in-east-africa-over-export-oil-pipeline-route\/","url_meta":{"origin":3831,"position":5},"title":"Confusion in East Africa Over Export Oil Pipeline Route","author":"","date":"March 2, 2016","format":false,"excerpt":"Months after the Kenyan and Ugandan president reached a deal to have the pipeline go through northern Kenya to the Kenyan coast the pronouncement has been thrown into a spin with Museveni\u2019s visit to Tanzania to discuss about the southern route. 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