Velocys remaining upbeat despite plummeting 2020 revenue

(Alliance News) - Shares in Velocys fell on Monday after it posted tumbling full-year revenue ...

Alliance News 17 May, 2021 | 10:04AM
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(Alliance News) - Shares in Velocys fell on Monday after it posted tumbling full-year revenue figures.

The stock was trading 5.0% lower at 5.23 pence each on Monday morning in London.

The Oxford, England-based fuels technology company said revenue for 2020 dropped 46% to GBP178,000 from GBP332,000 the year before.

Velocys reported a pretax loss of GBP9.6 million, narrowed from GBP9.9 million in 2019.

In July, Velocys completed an oversubscribed fund raise of GBP21 million to support the Altalto Immingham project, a green jet fuel refinery in north-east Lincolnshire. The final phase of technical pre-development work on the project should be finished by July.

Despite the drop in revenue for the year, Velocys remained upbeat regarding future outlook, saying July's fundraise had enabled it to focus on client delivery going forward.

"Velocys overcame unprecedented circumstances in 2020 due to the Covid pandemic restricting international travel and compelling all of our colleagues to work from home except those involved in reactor manufacturing, laboratory and site safety work," said Chief Executive Henrik Wareborn.

"Our team demonstrated resilience and agility in adapting to the new conditions and ensured Velocys delivered all our contracted services and technology hardware to our customers.

"We are in a favourable position to take advantage of the growing global demand for climate change mitigation technology, specifically the decarbonisation of commercial aviation. The company remains capital light and cost disciplined with a focus on deploying our end-to-end technology solution via partners, site owners and third-party developers worldwide."

By Will Paige; willpaige@alliancenews.com

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Security Name Price Change (%) Morningstar
Rating
Velocys PLC 0.24 -

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