Sustainable fuels company Velocys PLC (AIM:VLS) slid into the red in the first half of 2023, posting a net loss before tax of £9.8 million for the period compared to a gain of £5.7 million a year earlier.
The company said the loss included unrealised foreign exchange losses due to the pound-to-dollar "re-translation effects".
Velocys posted £61,000 of revenue for the half year, an increase on the £48,000 recorded in the first half of 2022, generated mainly by its engineering consultancy services provided to third-party customers’ projects.
The company said in its interim statement that financial results for the full year are expected to be "in line" with an increase in revenue in 2024 following completion of project funding as its pipeline crystallises.
Its chief executive Henrik Wareborn said: "It has been an exceptionally busy period for Velocys, during which we have deployed the proceeds of our May fundraise to make significant progress in the development of our two reference projects, Bayou Fuels and Altalto, and build and nurture our substantial commercial pipeline.”
He added that the company’s sustainable aviation fuel (SAF) technology is "immediately deployable" and that the environment for the adoption of sustainable fuels is “positive” due to regulatory regimes that incentivise the fuels across the US and Europe.