Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce its interim results for the six months ended 30th June 2016.
HighlightsGood progress at ENVIA Energy’s GTL plant in Oklahoma City (in 1H16 and post-period end).
- Construction complete.
- Onsite loading of Fischer-Tropsch catalyst complete.
- Highly experienced Velocys commissioning team deployed on site in July 2016.
- Pre-commissioning activities substantially complete.
- Robust commissioning plan in place and early commissioning steps begun.
- US$3 million equity and US$9 million secured loan facility (10% coupon) made available to ENVIA in February 2016. Greater influence in the commissioning, start-up and operations of the plant for Velocys.
Other existing opportunities progressing:
- Preliminary engineering studies completed, including for a GTL project in Central Asia (post period end):
- Air permit granted on a third party project in the US (post period end).
- Strategy review underway. Update will be provided in 4Q16.
- Velocys pilot plant completed its comprehensive demonstration of the company’s technology.
- Revenue of £500 000 (1H15: £0.1 million).
- Cash (defined as cash, cash equivalents and short term investments) at period end £24.1 million (31 December 2015: £37.7 million).
- 2H16 cash outflow to be materially lower than 1H16 (excluding the drawdown on the loan to ENVIA).
David Pummell, CEO of Velocys, said, “Successful commissioning and operational startup of the ENVIA plant is now within sight, and its steady state operation will represent a seminal milestone for Velocys. Planned progress is being made week by week towards this goal by our operational team on the ground in Oklahoma City. Our significantly increased operational involvement in the ENVIA project has allowed the company to assure the plant’s successful operation and has further enhanced our core competences and real world GTL project execution, commissioning, startup and operations capabilities.
“In addition I am very pleased with the progress made recently on a number of other fronts, including a detailed review of the Company’s strategy, advancement of future project opportunities and maintaining a continued focus on prudent cost management across the company.”
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/30092016/velocys-releases-interim-results/