EQTEC shares slip after nearly doubling losses

Energy infrastructure developer and operator EQTEC (LON:EQT) saw shares fall 15 percent in early trading on Monday, after nearly doubling their losses in the six months to December 2016.

The group, which focus on the production of clean energy in the UK and Ireland and recently changed their name from REACT Energy, saw losses widen to 451,096 euros from 251,257 in the same period last year.

Revenue also declined in the six months to 31 December 2016, down to 105,464 euros, with gross profit also fell to 105,464 euros, from 131,031 euros over the six months to December 2015.

However Gerry Madden, the group’s Chief Executive Officer, said EQTEC would enter 2017 with “renewed optimism”, despite the disappointing results.

“Thanks to the support of new investors, we successfully raised new funds of over 1 million euros in February and March 2017, to allow us to further strengthen our balance sheet and to provide the financial resources and flexibility to advance our portfolio of projects including Newry and in collaboration with EBIOSS, existing Energy from Waste projects in the UK using EGT.

“The key to our future is the continued support of all of our stakeholders and we look forward to updating the market further as we continue to develop and consolidate our position in the Energy from Waste market in the UK,” he added.

In January shareholders voted to further strengthen ties between EBIOSS Energy AD and the EQTEC by approving a debt for equity conversion, resulting in EBIOSS becoming the company’s majority shareholder.

Looking to the rest of the year, Madden concluded: “While the economic and political backdrop remain challenging, with the support of all of our stakeholders we are well placed to deliver on our plans.”

Shares in EQTEC are currently trading down 10.43 percent at 5.15 (0937GMT).

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