After a milestone year where it brought its gas-to-liquid (GTL) technology to the brink of commercialisation, Oxford Catalysts (OCG) aims to have its first commercial project to market in 2013. Having completed a major field trial and now with a manufacturing supply chain in place, the company has two revenue-generating projects due to kick-in during the second half of this year and has added four new clients so far this year.
Potentially its closest prospect is GreenSky London, a biomass-to-liquid jet fuel project set up by aviation fuels developer Solena Fuels, from which British Airways has agreed to purchase $500m (£315m) of jet fuel over a 10-year period. Oxford Catalysts is expecting to earn $30m during construction between now and 2015, plus ongoing revenues of at least $50m until 2030. The other is in the US, a downstream project using the GTL technology with petrochemicals refiner Calumet.
The company's extensively patent-protected technology houses the GTL process in modular units, allowing cost-effective deployment in remote locations and for lower costs, both onshore and offshore, upstream and downstream. "This is effectively an intellectual property business so partners are crucial," says chief executive Roy Lipski. "We have a relatively small cost base and can scale up pretty quickly."
Year-end net funds of £8.2m have since been bolstered by a £30m placing in January. Broker Numis Securities estimates losses of £9.2m this year, a £2.1m loss in 2014 and a profit of £12.7m in 2015 based on three orders generating revenue of £43.8m.
Oxford Catalysts (OCG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £176m | |
| TOUCH: | 148.25-154p | 12-MONTH HIGH: | 201p | LOW: 45.25p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 29p* | NET CASH*: | £8.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.30 | -3.5 | -7.7 | nil |
| 2009 | 8.65 | -6.1 | -9.1 | nil |
| 2010 | 7.65 | -8.1 | -11.5 | nil |
| 2011 | 4.72 | -10.4 | -11.4 | nil |
| 2012 | 7.63 | -10.8 | -11.5 | nil |
| % change | +62 | - | - | - |
*Includes intangible assets of £25.2m, or 22p a share | ||||
