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LONDON (Alliance News) - Active Energy Group PLC on Wednesday reported a widened pretax loss for 2015, and said it believes it is entering a "truly exciting period" for its business as it progresses sales of its coal replacement fuel.
The renewable energy and timber processing company reported a pretax loss of USD5.5 million for 2015, widened from a pretax loss of USD2.7 million the year before, as a rise in revenue to USD24.4 million from USD23.3 million was offset by step up in administrative costs due to a payment of option awards.
Active Energy said it remains focused on cost reduction, and expects to see benefits of savings in 2016. It said its cash position was stable.
Active Energy said its business had been hit in the second and third quarters by the Bulgarian and Ukrainian bans on the export of hardwood logs to Turkey. It noted that despite this hit, it had a profitable fourth quarter, and 2016 to date, and is now back on track with improved margins and volumes meeting targeted levels.
During the year the company signed a deal with Biomass Energy Enhancements LLC to establish a joint venture, AEG CoalSwitch Ltd, to develop and commercialise a biomass coal replacement fuel.
The company is now separated into three divisions, the CoalSwitch venture, its AEG WoodFibre processed wood fibre production facility near Odessa on the Black sea, and AEG Timberlands in Canada, which is focused on commercialising forestry assets and is expected to begin initial operations in 2016.
"This has been a transformational period for Active Energy with our core business, AEG WoodFibre, providing a cornerstone for the development of our diversified operations. We have made great strides across the business and have created an exciting vertically integrated corporate structure that we believe has the ability to generate significant shareholder value," said Chief Executive Officer Richard Spinks in a statement.
Shares in Active Energy were up 3.2% at 4.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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