Cape Slumps Most Ever on Algeria LNG Charge: London Mover
Stock Chart for Cape PLC (CIU)
Cape Plc (CIU), a supplier of fire protection, scaffolding and cleaners to energy companies, had its biggest slump in London trading after saying it will take a charge for losses on an Algerian project.
Cape plunged 37 percent to 205 pence, the steepest one-day decline since the shares were first sold in 1989. Today’s drop reduced the market value of the Singapore-based company to 248 million pounds ($388 million).
The company said it will book a 14 million-pound charge related to a contract for the Arzew liquefied natural-gas contract awarded by a unit of Saipem SpA (SPM) in 2010, according to a statement today.
An audit has “identified additional costs arising within the Arzew Project, which as a result is currently projected to produce a significant loss,” Cape said. The project had been “slower than expected with revenues in 2011 less than one-third of planned levels.”
Seven of 10 analysts who report their recommendations to Bloomberg advise investors to buy the stock. James Thompson at JPMorgan and John Cummins at WH Ireland Ltd. reiterated buy ratings today, though both lowered their share-price predictions.
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