Eqtec losses widen despite operational progress
By Josh White
Date: Friday 05 May 2023
(Sharecast News) - Eqtec reported revenue and other operating income of €8m in its final results on Friday, a decrease from €9.2m in the prior year.
The AIM-traded firm said its EBITDA loss before significant and non-recurring items totalled €4.9m for the 12 months ended 31 December, widening from €3.8m year-on-year.
Net assets at period end were €37.1m, a decrease from €43.4m at the end of 2021.
During the period, Eqtec secured two loan facilities - one for up to £10m (€11.3m), and the other for £2m.
The company also raised £3.7m through the placing of new shares.
However, its net loss, including significant and non-recurring items, came in at €10.5m, including an investment impairment of €4.7m in relation to the North Fork project in California.
Despite the losses, Eqtec said it had made significant progress since year-end.
The company signed a cooperation agreement with the Republic of Guinea for the construction and operation of a waste-to-energy plant.
Additionally, it signed a collaboration agreement with Iberdrola Renewables España for the development of hydrogen projects in Spain.
"Eqtec in 2022 reaffirmed its business strategy, strengthened its growth platform and toughened its resolve," said chief executive officer David Palumbo.
"Based on having one of the few technologies of its kind with a proven track record, we focused our energies on ensuring we can truly make our technology available, reliably and consistently, for the several business models we support in the world of new energy infrastructure.
"We delivered focused, formative progress in three key areas of our business strategy."
Palumbo said that first, the company pushed ahead with three MDCs, as demonstration of Eqtec's versatile syngas solutions in live, reference plants.
"Second, we took further steps in retaining our technology leadership, deploying upgraded research and development capability for regular testing of solutions for advanced biofuels such as RNG, hydrogen, liquid fuels such as sustainable aviation fuel (SAF) and for chemicals such as ethanol or methanol.
"Third, we released the company from untenable liabilities in major projects and turned our attention to the tier one and two leaders that will help us deploy our solutions through the world's best funded, best managed projects."
Eqtec's target remained becoming a "leading licensor and innovator" of technology to deliver clean, baseload energy and biofuels to industrial and utility companies, David Palumbo added, as well as to municipalities and agroindustry.
"To become that, we must be more than simply the leading innovator for waste-to-value solutions; we must also be known for deploying our technology through projects that consistently deliver on time, to budget and for plants that deliver healthy returns on investment, sustainably over their lifetimes."
At 1124 BST, shares in Eqtec were down 2.86% at 0.19p.
Reporting by Josh White for Sharecast.com.
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