Falling profits pull down EQTEC

AIM-listed gasification technology firm EQTEC (LON:EQT) saw its share price drop by 5.26% to 0.45p (as of 12:35 BST) after operating losses for the six months ended 30th June widened due to increased administrative costs. Revenues for the half year plunged by half but there are substantial payables and income that have not yet been recognised.

CEO David Palumbo commented: “We expect strong pipeline growth to continue through H2 and our partner portfolio approach to continue bearing fruit. However, we are starting to experience some delays in closing deals on account of banks and government institutions continuing to grapple with the impacts of Covid-19. As a result, we expect delays with a small number of deals previously expected to close in H2 2020, shifting instead to close in H1 2021. Given the size of our growing pipeline and market enthusiasm for our waste gasification technology, we see 2021 as potentially exponential in terms of deal closures and revenue growth as governments across the globe seek to encourage a green economic recovery. Fuelled further by investment from EQTEC’s own development capital in a majority of these opportunities, we believe we can both accelerate and secure financial closure of these and future deals. Through combining EQTEC technology, capital and strengthening partnerships around the world, we intend to scale our business and more effectively position ourselves to lead the growing gasification industry and to drive sustainable revenue and shareholder value“.