LONDON (ShareCast) - (ShareCast News) - Patented water treatment solutions provider MYCELX Technologies posted a trading update on Monday, claiming that throughout 2016 it continued to demonstrate good operational progress with a recent contract award for a fifth installation of offshore water treatment equipment for a current customer.
The AIM-traded firm said on top of that, it commissioned its fourth water treatment system servicing terminals on the Houston Ship Channel and expects the subsequent media sales to begin in 2017.

It said it remained confident that it will be able to report results for the full year ended 31 December, which were in line with market expectations, and showed MYCELX having successfully achieved an operationally cash flow neutral position in line with its stated target.

Since announcing its exclusive marketing and distribution agreement with Schlumberger in June, both companies collaborated to organise the global marketing initiative that was launched in the fourth quarter, and has been presented in six countries to date.

The board said that targeted engagement with industry decision makers was expected to lead to the deployment of MYCELX proprietary water treatment systems, in particular MYCELX's RE-GEN product for the upstream market.

While it was too early to forecast the likely 2017 revenue contribution, the board said the pipeline was growing and joint proposal activity is increasing.

Overall, the MYCELX contracted order book was stronger than at the same time last year, and the company therefore envisaged a year-on-year revenue increase for 2017 in the range of 30%, with the aim of being EBITDA neutral, and with no material change in cash balance.

MYCELX's revenue was already being generated from a broader geographic base than previously, and the company said it fully expected that positive trend.

The board did warn that the investment climate remained uncertain and, consequently, forecasting with any degree of accuracy remained challenging.

As such, the company said it would continue to adopt a prudent approach to expenditure, whilst continuing the encouraging international sales and marketing efforts.

MYCELX said it would be providing further guidance at the time of its results for the year ended 31 December 2016, expected to be announced in May 2017.

"MYCELX's world leading clean water technology solutions continue to gain traction into its core market of the oil & gas sector, and increasingly beyond," said CEO Connie Mixon.

"Our partnership with Schlumberger is progressing well with the global marketing initiative currently underway.

"We are also pleased to update on other important operational milestones, such as our further work with a repeat global oil and gas customer."

Mixon said progress as a business was firmly underpinned by industry's requirement for innovative technologies to manage their water requirements.

"We are providing a service that not only significantly enhances the economics of our clients' projects, but that also ensures improved operational efficiencies and performance.

"We are pleased to confirm that we will meet guidance for 2016."

Looking ahead, Mixon said the current year was expected to continue to show an improved financial performance.

"However, market uncertainty remains the reality and accurate 2017 full year guidance remains difficult at this stage.

"That said, we are encouraged by the levels of interest and that the order book is currently ahead of where it was at the same time last year."

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