15th Jan 2015 17:55
LONDON (Alliance News) - Mycelx Technologies Corp said Thursday that it expects to post a pretax loss of USD5.7 million for 2014 as a result of contracts being delayed, and lowered its revenue forecast for 2015.
Mycelx now expects to post revenue of USD13.6 million for 2014. In November last year the company had said that, if it did not see revenue from projects in its short term pipeline before the end of 2014, it would expect its full year to be no less than USD16 million.
The company said that, "given the uncertainty and extreme volatility surrounding the oil and gas industry it is not prudent" to maintain its current revenue forecast for 2015. The company is now forecasting revenue between USD24 million to USD29 million for 2015.
The company had expected to see USD1.8 million in revenue from a stored waste water project in 2014, but the contract was delayed into 2015, and an additional USD450,000 in revenue from another project expected in December was not realised as the project was completed ahead of schedule due to lower than expected water volumes.
It also saw a shortfall from end of year media sales forecast from existing customers that did not occur.
Mycelx said that, whilst December has historically been a strong month, it believes clients were reluctant to spend surplus budgets due to the significant price declines in WTI and Brent during the last quarter of 2014.
The company has won a contract for a short term waste water project which is currently capped at USD2.9 million. It noted that, whilst its in discussions on two larger projects, they remain "active prospects", and given the scale of the projects and unpredictability in the timing of the project awards, revenue forecast in relation to these projects has been revised downward for 2015.
It has also received USD3.6 million for a lease renewal with a customer in the Middle East.
"MYCELX will continue to provide long term value to the oil and gas industry. Cost effectively treating water associated with production and process will remain an important focus even in the difficult environment of volatile oil prices," said Chief Executive Officer Connie Mixon in a statement. "The company believes it should be profitable in 2015 by closely managing costs in line with revenue realized throughout the year and will continue to build its business for the future."
Shares in Mycelx were untraded Thursday. It last closed down 5.7% at 165.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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