27th Mar 2014 14:18
LONDON (Alliance News) - Synthetic fuels producer Velocys PLC Thursday said its losses widened in the full-year, as it retreated from development and transitioned to commercialisation.
The technology innovator for smaller scale gas-to-liquids posted a pretax loss of GBP18.0 million for 2013 compared with losses of GBP10.8 million, as revenue fell to GBP4.8 million from GBP7.6 million a year earlier.
Velocys said for the first time it recorded no revenue from development projects, however this was expected due to its transition to "commerciality," as its activities become focused on "commercial readiness."
The company's results were also dented by an increase in unfunded research and development costs and other administrative expenses to GBP16.8 million from GBP12.5 million as commercial activities ramped up.
Velocys, which was until September known as Oxford Catalysts Group, said post the year-end it signed a manufacturing partnership with Ohio-based metal products supplier Shiloh Industries Inc.
The company said Shiloh has set up a mass-manufacturing cell for Velocys reactor cores and under the partnership they will work to improve manufacturing of Velocys' Fischer-Tropsch reactor, and over time to enhance the effectiveness of the whole gas-to-liquids plant.
The Fischer?Tropsch process is a collection of chemical reactions that converts a mixture of carbon monoxide and hydrogen into liquid hydrocarbons.
In addition Shiloh purchased 601,326 Velocys shares at 200 pence per share, representing a 32% premium to market price at the time. Shiloh is additionally investing several million dollars in manufacturing resources for Velocys, and is making available to the partnership a team of engineers.
Financially, at the year-end, the firm has cash, cash equivalents and short term investment of GBP26.4 million up from GBP9.5 million.
The stock was trading at 165.00 pence Thursday morning, down 0.25 pence or 0.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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