4 months ago
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Tropical Battery Company Limited made a profit of $2.78 million, in the March second quarter, reflecting a decline nearly 90 per cent compared to profit of $26.6 million in the year prior.
Revenue grew by five per cent to $1.63 billion.
Much of the pressure on the company’s bottom line relates to the cost of debt servicing.
Tropical Battery was $93 million in the red at half-year, a turnaround that came amid a restatement of the first quarter profit for October-December 2024, which saw the energy company making a loss of $96 million instead of the profit of $35.5 million previously reported.
“The reported net loss primarily reflects the one-off impact of high-cost financing used to acquire Rose Batteries,” the company said of the restated first quarter results.
Rose Batteries was acquired in January 2024 for US$20 million. Tropical is currently in the process of selling new shares on the stock market to pay down the bridge loan of about $1.4 billion (US$9.5 million) utilised for the acquisition as well as $300 million in bond debt.
The additional public offering of shares has been extended to July 4.
Completing the APO remains a top priority, as it will facilitate repayment of the bridge loan facility, reducing finance costs,” the energy company said.
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