Losses deepen at Emeco

Australian rental company Emeco has reported lower revenues and continued losses for its full-year 2016 financial results after being hit by impairments in its Canadian business.

The mining and heavy equipment specialist reported a loss of AU$225 million (€154 million) for 2016, compared to a loss of AU$123 million (€84 million) for 2015. Its revenues for 2016 stood at AU$208 million (€143 million), down AU$34.8 million (€23.9 million) year-on-year.

Emeco said its loss included impairment costs of AU$180 million (€123 million) from its Canadian, Chilean and Australian operations. It said it was also seeing a slower and softer market recovery in all its operations.

Emeco said its management was aware of the need “to improve the company’s resilience to external shocks and provide the flexibility to take advantage of opportunities arising in the market”.

It added that it while it had sufficient near-term liquidity, additional capital structure flexibility was necessary for sustainability in the future. It said its advisors and capital backers were assessing opportunities to improve the company’s balance sheet.