14th Sep 2016 10:57
LONDON (Alliance News) - Oil removal technology company Mycelx Technology Corp said on Tuesday it was on track to be cash neutral in its operations for 2016, as interim revenue dropped sharply in a "distressed" oil market.
Mycelx booked a pretax loss of USD1.4 million for the period to the end of June, slightly wider year-on-year from a pretax loss of USD1.3 million. Revenue fell by 55% to USD3.9 million from USD8.7 million.
Mycelx said the decline in revenue due to low oil prices was as expected, and in response it had implement cost cutting measures which saw total operating expenses down 41% to USD3.4 million for the reporting period from USD5.8 million in 2015.
Mycelx said cash preservation has been an "imperative", and that it had generated USD200,000 cash in operations in the year to June, compared to using USD2.2 million in cash in the same period the year prior. Net cash at the end of the period stood at USD3.7 million, dipping from USD3.9 million at the end of December 2015.
The AIM-listed company said it has adapted its business plan with the goal of being operationally cash positive in 2016, identifying lower-cost projects to bridge the gap of large-scale projects providing slower revenue.
"During the first half of the year the company met key milestones in its cost reduction program, converted new business development opportunities into revenue generating installations and made significant progress on its goal of strategic alliances" said Chief Executive Officer Connie Mixon.
"Mycelx believes the volatile market conditions are likely to continue throughout the rest of 2016 and beyond, but is well positioned to meet those challenges," Mixon added.
Shares in Mycelx were up 31.0% at 38.00 Wednesday.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Mycelx Di