Farol ends the semester with a loss of 1.3 million

Farol ends the semester with a loss of 1.3 million

Farol posted a loss of 1.3 million euros in the first half, an improvement, however, compared to the 1.7 million losses it closed in the first half of 2020, the company reported Friday led by Luis Balha da Silva.

Farol notes that the loss is mainly due to “recurring operating costs of 1.4 million euros”.

In a statement, the company noted that equity amounted to 134.9 million euros at the end of the semester, a decrease of 30.5 million euros compared to December 31, 2020. This decrease, it says, reflects “
Impairment of stake in Oi by €29.8 million and negative net result of €1.3 million.”

Pharol details that its 5.28% stake in Oi was equal to €80.4 million at the end of June, this was punished by lower share prices for the Brazilian operator, but this effect was mitigated by the appreciation of the real against the euro, which “allowed for foreign exchange gains of 5.3 million euro”.

Farol’s operating costs remained virtually unchanged compared to the first half of 2020, rising from €1.44 million to €1.46 million.

Looking forward, Pharol management believes that “taking into account the expected extended period of significant asset value recovery – operational improvements at Oi dependent on new investments and protracted legal actions in Rio Forte – has analyzed the potential of a
Strategic diversification of its portfolio and reflection on the skills and costs that may be required, particularly in strengthening the management team and achieving the appropriate level of management
A wider range of collectibles.

By Andrea Hargraves

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