Echo Energy PLC Argentina: VAT Update (3091A)
June 01 2021 - 01:00AM
UK Regulatory
TIDMECHO
RNS Number : 3091A
Echo Energy PLC
01 June 2021
1 June 2021
Echo Energy plc
("Echo" or "the Company")
Argentina: VAT Update
Echo Energy, the Latin American focussed energy company, is
pleased to provide an update on the Argentine value added tax
("VAT) reclaim process, and the successful monetisation of a
further proportion of the Argentine VAT owed to the Company.
Disbursements totalling Ars$ 48.4 million (approximately US$ 0.5
million), consisting of Ars$ 33.1 million plus interest of Ars$
15.3 million of PP&E VAT owed to Eco Energy TA Op Limited (the
"Subsidiary"), the Company's subsidiary which holds a 25% interest
in the Santa Cruz Sur assets (of Echo's total 70% interest), have
now been received. This cash payment demonstrates the continuing
successful processing of VAT refunds owed to the Company by the
Argentine authority, AFIP, as it resumes normal activity following
months of COVID - 19 related shut down.
Following these most recent disbursements, historical reclaims
regarding VAT owed to the Echo group related to operations at Santa
Cruz Sur totalling approximately US$0.7 million remain in
progress.
The Company is also pleased to announce that the 2020 PP&E
VAT claim of Ars$ 54.8 million (approximately US$ 0.6 million) for
Eco Energy TA Op Limited has been accepted by the Argentine VAT
office. The Company's subsidiary, Eco Energy CDL Op Ltd , which
holds Echo's remaining 45% interest in Santa Cruz Sur, has also had
its 2020 PP&E VAT claim of Ars$ 8.1 million approved. Further
processing of these claims will now take place ahead of future
expected reimbursement.
The Argentine VAT office has also separately now approved the
Free VAT application Eco Energy CDL Op Ltd of Ars$ 9.5 million and
Echo have completed a sale of this VAT credit in exchange for
cash.
The unlocking of the Argentine VAT refund process is, and is
expected to continue, to provide material cash funds in the coming
months and provides further evidence of the normalisation of in
country activities following delays in 2020 caused by COVID 19
restrictions.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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