Trading Statement

RNS Number : 7065T

MyCelx Technologies Corporation

22 July 2015

 

MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)

Half Year Trading Update

MYCELX Technologies Corporation (AIM: MYX), the clean water technology company providing patented solutions for commercial industrial markets worldwide, announces a trading update ahead of its 2015 Half Year Results which will be released on 10 September 2015.

Trading conditions over the first half of 2015 continued to be challenging for the oil and gas industry and the associated service sector, with many of the operators exercising stringent capital discipline. In the face of the difficult market, MYCELX notes the resilience of its business sales which amounted to $8.6m in H1 compared to $7.5m in the same period last year. The increase demonstrates that our technology continues to deliver value in an industry that is struggling with significant price dislocation and is consequently focused on extreme cost reduction measures. These market conditions are expected to continue throughout the second half of the year.

Leveraging the success of two petrochemical plant turnarounds in H1, the Company is aggressively pursuing this market in H2 and beyond, given our technology and expertise has proven to be very effective in this application. The budgets and schedules for these projects are already approved eliminating uncertain and protracted timelines. Additionally, the Company is taking advantage of the departure of several oil field services companies that were providing water management for US onshore production by actively pursuing projects where previous treatment options are no longer economically viable. The Company has entered into strategic agreements which it believes will accelerate this fast-to-market opportunity.

Given the adverse market conditions which have resulted in cancellations and delays in capital approvals for major projects across the industry, MYCELX is updating its guidance on FY 2015 outlook. The Company notes that were there to be no new contract wins and based on the current run rate, it expects total revenue would be in the range of $15 - 16.5 million, representing a 10-20% improvement on FY2014. The Company regrets that at this time one of the major projects that it was previously pursuing has not progressed further and its timetable is now unclear. MYCELX continues to progress the larger of the major projects in its near term pipeline, where the operator has paid for additional trials to further refine their overall clean water solution. Furthermore, MYCELX is pursuing additional opportunities, most notably for Enhanced Oil Recovery (EOR) applications, where the Company's technology has proven to be uniquely capable. The effect of capital approval delays has pushed an increasing proportion of the revenue from actively pursued projects out into H2 2015 and beyond. The Company also notes that its cost reduction programme is now well progressed and on track to deliver 10% savings for the full year.

For further information please contact:

MYCELX Technologies Corporation

Connie Mixon, CEO                                                                                                         Tel: [phone]

Mark Clark, CFO

RFC Ambrian Limited                                                                                                     Tel: [phone]

Corporate Finance

Samantha Harrison

Alexander Millar

Corporate Broking

Jonathan Williams

Kim Eckhof

Numis Securities Limited                                                                                             Tel: [phone]

Corporate Broking

James Black

Ben Stoop

Bell Pottinger                                                                                                                    Tel: [phone]

Nick Lambert

Henry Lerwill

 

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