Construction and engineering firm Group Five said on Thursday its half-year loss widened more than it expected, following continued difficulties at its Kpone power project in Ghana.
The headline loss per share for the six-months ended December 31, widened to 781 cents per share from 310 cents a year earlier.
“We expected this period to remain very difficult. Unfortunately, even against this expectation, our results for the six months to December were significantly below our objectives and very disappointing,” said Chief Executive Themba Mosai in a statement.
The company was ensuring “continued senior team focus to drive this contract to completion.”
The group said in December that, although the Kpone contract was 97% complete with only commissioning remaining, further delays were being experienced, which resulted in a loss on the contract of R649 million ($54 million).
The reasons for the delays include unexpected marine conditions and the weather effect on seawater intake, further late delivery of key components, problematic and faulty equipment from main sub-contractors and inaccurate and late designs, it said.
Group revenue dropped 14.5% year on year to R4.9 billion.
The order book fell to R13.4 billion from R14.6 billion in June.