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Amedeo focused on long term strategy despite challenges

Amedeo owns indirectly 19.% of YZJ Offshore, via its 47.5% stake in the joint venture company, YZJ Offshore Engineering
Amedeo focused on long term strategy despite challenges
YZJ Offshore is a giant shipyard in China

Marine vessel and commodity investor Amedeo Resources PLC (LON:AMED) expects its first order - a mobile offshore jackup rig named 'Explorer 1' - to be ready for delivery by the end of 2016.

The market for marine vessels remains depressed and no new orders have been won for rigs or other marine vessels, it told its latest half year results.

But it reckons this mood will change and the construction yard -  YZJ Offshore - is well placed to take advantage.

Amedeo owns indirectly 19.% of YZJ Offshore, via its 47.5% stake in the joint venture company, YZJ Offshore Engineering Pte Ltd.

The group also has a 49% stake in ferrous metals and ore wholesaler MGR.

With the iron ore market down, MGR cut back activities to a bare minimum and with surplus capital repaid its £1.2mln loan from Amedeo.

Overall, for the six months to June 30, Amedeo posted a loss of US$632,000 against US$749,000 in 2015.

Cash at the end of the period was US$3.998mln (2015: US$3.281mln), mainly due to that repayment of the loan by MGR.

"Despite the current difficulties in both the marine vessels market and the iron ore and commodity markets, Amedeo is well resourced and remains focused on long term strategy of building a vertically integrated business in the resource and energy and related infrastructure sectors," it said.

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