AUS
NZ
UK
CA
USA
IND
_09_19_2024_15_18_44_391379.jpg)
EQTEC plc (LSE:EQT), a global leader in waste-to-energy technology, has announced its unaudited interim results for the six months ending June 30, 2024. The company, which focuses on transforming waste into hydrogen, biofuels, and energy, reported significant financial growth and key advancements in its global projects.
In terms of financial performance, EQTEC achieved a tenfold increase in revenue, reaching €1.45 million for H1 2024, compared to €0.145 million during the same period in 2023. The company also saw a marked improvement in gross profit, which surged to €0.826 million, up from €0.036 million in H1 2023. This growth was driven by a shift towards high-margin intellectual property-rich services and a reduction in high-risk development activities, resulting in a significant improvement in gross margin, which rose to over 50%, compared to just 15% in FY 2023.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) showed improvement as well, with losses decreasing by 17% to €1.60 million, down from €1.92 million in H1 2023. EQTEC also successfully raised £0.85 million (€1 million) through the placement of new shares and refinanced its loan facility. After the reporting period, the company raised an additional £1.1 million (€1.3 million) through equity investment in September and secured £2 million from the settlement of a legal claim.
Despite a net loss of €3.19 million, including €1 million in non-recurring items, EQTEC is optimistic about the future. The company expects to maintain its improved gross margins throughout 2024, driven by a focus on rate improvements, cost management, and delivery efficiency.
Looking ahead, EQTEC is transitioning to focus on licensing its technology and fostering innovation, particularly in advanced syngas chemical applications like synthetic fuels. The company is also making significant progress in developing reference plants that can showcase its technology to potential clients, facilitate research and development, and offer engineering training.
At its Italy plant, located in Gallina, Tuscany, EQTEC has already hosted multiple client visits and has garnered positive attention from local officials, including the newly elected mayor of Castiglione d'Orcia. This plant is becoming a symbol of clean energy and waste disposal, enhancing its visibility and credibility in the local community.
In Greece, EQTEC assisted in commissioning a plant that utilizes its technology, while in North Fork, California, the company is nearing completion of a plant that has faced delays but is now on track for commissioning in Q4 2024. In Croatia, EQTEC reconfigured a project to meet local industry demands for managing unrecyclable plastic waste, significantly improving its financial prospects.
However, some projects have faced delays due to external factors. In France, for instance, progress on projects like Grande-Combe has been slowed by pending building permits, while other initiatives are on hold awaiting the release of renewable natural gas (RNG) tariffs from the French government.
