Our decision to peg our colours to the mast with oil services company Thalassa (THAL) and recommend readers take advantage of a share-price slip has proved to be a mistake.
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That’s because the stock dropped 25 per cent on news that Russian sanctions would hit second-half revenue to the tune of $10m. Unpaid bills and yet-to-be repatriated equipment means Thalassa could, in the worst case, also be on the line for a $4.1m hit from recent work with Russia’s SMG.
Broker WH Ireland has adjusted full-year forecasts down $10.3m to $26.3m as a consequence and its pre-tax profit prediction is now 10 per cent lighter at $4.5m. The impact on profit forecasts has been slightly mitigated by stronger gross margins.
