EQTEC shares surge as H1 losses ease

(Sharecast News) - Clean energy tech group EQTEC has warned of "near-term volatility" after external headwinds hit revenues in the first half, though losses was reduced significantly. The company, known for its proprietary syngas technology for clean conversion of waste into sustainable energy and biofuels, reported revenues of €0.64m over the six months to 30 June, down from €0.83m the year before.

This was driven by delays, withdrawals and restructuring among customers and partners, which slowed the pace of delivery across several projects, EQTEC said.

However, a 22% drop in admin expenses and a big improvement in gross margins to 82% from 53% - helped by a shift toward high-margin services and away from high-risk development activities - the pre-tax loss for the period eased to €2.07m from €3.19m previously.

"EQTEC continues to face near-term volatility as customer and partner circumstances evolve, but the long-term opportunity remains compelling," said chair Ian Pearson.

"International policy momentum towards Sustainable Aviation Fuel and advanced biofuels aligns strongly with our technology and commercial strategy. With gross margins improving, a leaner operating model, and validation of our synthetic fuels pathway, we remain confident that EQTEC can attract the right partners and investors to deliver on its potential."

Shares were up 23% at 0.45p by 1456 BST.