1st Dec 2022 16:18
(Alliance News) - Eqtec PLC on Thursday said it has lowered its revenue forecast for the whole of 2022 as it failed to formalise a key sale contract.
The Cork, Ireland-based gasification technology and engineering company updated its revenue forecast between EUR5 million and EUR7 million from between EUR10 million and EUR12 million, after the company was unable to formalise a contract with an unnamed investor for the sale of Deeside WTV Ltd.
As a result of the failure of the sale, the company will be unable to realise revenues of GBP4.5 million from the sale of the Deeside project in Flintshire, UK.
The company also changed its earnings before interest, taxes, depreciation, and amortization forecast to a loss in the range of EUR4 million to EUR5 million, widening from a loss of between EUR2 million and EUR3 million a year ago.
"It is disappointing to see this negotiation for purchase of the Deeside project fall through, with the consequential impact on our 2022 forecast. On the other hand, we view this setback as temporary and not a major block to progress with the project," Eqtec Chief Executive Officer David Palumbo said.
"We have already turned to other potential investors and committed ourselves to securing an alternative financing solution quickly," Palumbo added.
"We remain committed to announcing the funding of Deeside in early 2023 and to moving at pace from there toward financial close and construction start," Palumbo said.
Eqtec shares were down 14% trading at 0.31 pence per share on Thursday afternoon in London.
By Harvey Dorset; [email protected]
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