29/07/2014 - 15:40

Imdex sells out of Sino Gas & Energy

29/07/2014 - 15:40

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Imdex sells out of Sino Gas & Energy

Drilling fluids and equipment supplier Imdex has sold its stake in Sino Gas & Energy Holdings, raking in $17 million from the sale.

Imdex today announced it had sold its 91.9 million shares in Sino at 18.5 cents per share, with the bookbuild sell-off giving it a profit of $14.2 million.

"The sale proceeds will further strengthen Imdex's cash position and provide additional financial flexibility as the company continues to execute it's growth strategy in FY15 and beyond," Imdex said in a statement to the ASX.

Imdex is due to release its full-year financial results to the market on August 18.

In April, Imdex said its revenue for the first three quarters of FY2015 was $154.7 million, down 19 per cent on the previous corresponding period.

The company reported $15.3 million in net profit for the first half of FY2014 in February, down from $16.6 million in the first half of FY2013.

Imdex's third quarter revenue for FY2014 was $52.8 million, down 5 per cent on the third quarter of FY2013.

The falling revenue was driven largely by slowing activity in its minerals services division, which represents around 66 per cent of the company's earnings.

Imdex forecast in April that challenging conditions for its minerals division were likely to remain for the foreseeable future, but also said it's oil and gas division was expected to exhibit sustained growth.

At close of trade today, Imdex shares were steady at 67 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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