4th Nov 2019 10:34
(Alliance News) - Shares plunged in MyCelx Technologies Corp on Monday as it revised its expectations to a loss for 2019 due to recent events in Saudi Arabia affecting performance.
Shares in the oil & gas market-focused clean water technology firm were 20% lower at 53.0 pence on Monday in London.
For 2019, MyCelx has forecast a loss before interest, taxes, depreciation and amortisation of USD1.3 million, on revenue of USD12.5 million. The company originally expected Ebitda to be USD2.5 million, on revenue of USD20 million.
In 2018, MyCelx reported Ebitda of USD5.6 million from revenue of USD27.0 million.
MyCelx said that the reduced revenue expectations was due to adjustments in the second half of the year for customer maintenance schedules and disruption in production in Saudi Arabia, following recent events.
Although MyCelx did not specify what these events were, in September there were reported attacks on a Saudi Arabian oil facility and oilfield, causing a dent in the country's total output.
In addition, the group had forecast the delivery of "significant revenue" from its Rapid Response deployment and maintenance activity.
However, while maintenance activity is expected to rise in the first half of 2020, the Rapid Response contracts are unlikely to occur in the currently tough trading environment.
"Whilst we are frustrated about the current market conditions in the Middle East, we remain upbeat about the number of opportunities we are seeing at the moment. Although we expect there to be a short term impact to our business, and believe that revising our guidance for 2019 is prudent, we remain at the forefront of the industry and continue to be well placed to capitalise on multiple live project opportunities," said Chief Executive Officer Connie Mixon.
MyCelx Technologies is headquartered in Duluth, Georgia in the US.
By Dayo Laniyan; [email protected]
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