Questions are being raised over the financial strength of Gasol plc, the lead partner in Electrogas Malta Ltd which has been entrusted by the government to build a new power station. 

The government recently authorised an unprecedented €88 million State guarantee to cover Electrogas’s exposure to a €101 million loan from Bank of Valletta.

The 2014 published annual report and financial statements of Gasol Plc, which holds 30 per cent in the Maltese project, reveals that the directors cast “significant doubt” on the company’s ability “to continue as a going concern.”

Gasol plc reported a negative equity of €12.8 million and accumulated losses of €96 million by the end of March 2014.

Gasol chief operating officer Alan Boxton said “the company is likely to be required to obtain significant capital in the future” and that “there is no assurance that it (Gasol plc) will be able to raise such capital when it requires or that the terms associated with providing such capital will be satisfactory for the company”.

Scott Knight, the independent auditor from London’s public accounting firm BDO LLP, said in the report: “The group does not currently hold sufficient cash or liquid assets in order to meet its commitments as they fall due for the next 12 months.   

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