30th Sep 2015 12:29
LONDON (Alliance News) - Velocys PLC on Wednesday said it is focused on delivering its commercial reference plant in the US in the first half of 2016 while reporting a wider pretax loss in the first half of 2015 as costs rose.
The gas-to-liquid technology company reported a GBP11.7 million pretax loss in the first six months of 2015, widening from the GBP9.7 million loss a year earlier, as revenue dropped to GBP120,000 from GBP958,000.
The main causes of the wider loss, however, were higher research and development costs totalling GBP6.0 million from GBP5.6 million a year ago, share-based payments rising to GBP1.5 million from GBP842,000, and administrative costs increasing to GBP5.1 million from GBP4.3 million.
"2015 is a year of delivery for Velocys. It is pleasing to see the tangible progress of commercialisation within the company, recently culminating in the completion of the reactors and catalyst for the Oklahoma City plant that will be completed next year," said Chairman Pierre Jungels.
The key priority for Velocys at this time is the successful build and start-up of ENVIA Energy's Oklahoma City plant, scheduled for mechanical completion in the first half of 2016.
"Velocys and its supply chain partners have successfully completed the manufacture of the reactors and the initial catalyst charge for the plant. Extensive work is in progress to be fully prepared for its start-up, and we and our joint venture partners have the benefit of an experienced team to support this coordinated effort," it said.
Velocys shares were down 7.8% to 68.25 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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