Magma Energy loss grows

Geothermal energy producer Magma Energy Corp. (TSX:MXY) reported an almost five-fold increase in its fiscal 2010 second quarter loss on Monday.

Geothermal energy producer Magma Energy Corp. (TSX:MXY) reported an almost five-fold increase in its fiscal 2010 second quarter loss on Monday.

Vancouver-based Magma, with operations in North, Central and South America as well as Iceland, said it lost US$5.3 million or two cents a basic and diluted share in the three months ended Dec. 31. Magma, which reports in U.S. dollars, said that compared with a loss of US$1.1 million or one cent a share in the prior-year period. Revenues for the quarter were US$1.4 million, up from $1.3 million in Q2 2009. Part of the reason for the loss was a US$1.93-million charge as part of Magma’s share of the loss suffered by HS Orka in the value of embedded derivatives in certain sales contracts. The contracts are indexed to the market price of aluminum, which declined in December after increasing for most of 2009. Magma recently increased its position in Orka, Iceland’s largest privately held energy company, to almost 41 per cent. The company’s shares last traded Friday at C$1.66, down a cent, on the The Toronto Stock Exchange.