22nd Jul 2015 07:41
LONDON (Alliance News) - Shares in clean water technology company Mycelx Technologies Corp Wednesday dropped 54% shortly after market open after it warned that trading conditions will remain challenging throughout the second half of 2015, and a major project it was pursuing has not progressed.
Mycelx said trading conditions over the first half of 2015 remained challenging for the oil and gas industry and associated service sector on the back of the fall in the oil price, leading to operators undertaking cost cutting measures.
Despite these conditions Mycelx noted that is business sales rose to USD8.6 million in the first half compared to USD7.5 million a year before, which it said "demonstrates that our technology continues to deliver value in an industry that is struggling with significant price dislocation and is consequently focused on extreme cost reduction measures."
The company updated its guidance for 2015, noting that were it to secure no new contract wins and based on its current run rate it expects total revenue would be in the range of between USD15 million to USD16.5 million, 10-20% ahead of the previous year. As a result of delays an increasing proportion of its revenue has been pushed into the second half of the year and beyond.
Mycelx said that a major project it was pursuing has not progressed further, and its timetable is now unclear. However, it is continuing to progress the large of the major projects in its near term pipeline, and is pursuing other additional opportunities.
Shares in Mycelx are trading down 54.2% at 60.00 pence Wednesday morning, the worst performer in the London Main Market.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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