Cape dives on LNG loss charge

Industrial service group Cape saw nearly 37% wiped off the value of its shares yesterday after it said losses on a liquefied natural gas project in Algeria would hurt profits.

Cape, which has offices in Aberdeen and employs around 1,200 people in the North Sea, said it would take a one-off charge of £14million – equivalent to more than one-quarter of its profits last year – after a review of the GL3-Z LNG development at Arzew, Algeria, unearthed additional costs likely to result in significant losses.

The FTSE 250 company, which left its full-year revenue outlook unchanged, made pre-tax profits of £61.9million in 2011.

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