NAIROBI Aug 21 Kenyan investment firm
TransCentury reported a first-half pretax loss on
Thursday, blaming the result on the sale of its stake in railway
Founded as an investment club by a group of wealthy Kenyans,
TransCentury said in a statement new power and construction
projects would improve its second-half performance.
The company, which runs an electricity equipment maker and
an engineering services firm active in the nascent petroleum and
mining sectors in Kenya, sold its 34 percent stake in RVR to
Egyptian private equity firm Citadel Capital in March.
The $43.7 million received from the sale meant TransCentury
had recovered its entire cash investment in RVR, but the
proceeds were below the historical fair value of the investment.
The loss before tax came in at 1.5 billion shillings ($16.99
million) for the half year to the end of June, compared with a
pretax profit of 590 million shillings in the year-ago period.
Revenue fell by 30 percent to 4.95 billion shillings due to
a delay to the start of several construction projects under its
engineering division, the company said. However, the projects
kicked off at the start of the second half of the year.
The company has said it will invest more than $2 billion in
building power plants, gas storage facilities and roads as it
broadens its operations to include potentially lucrative
(1 US dollar = 88.3000 Kenyan shilling)
(Reporting by James Macharia, editing by David Evans)