Press Releases

Interim Results 2014 - Revenue Increases by 61%

30 Sep 2014

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30 September 2014
 
GREKA ENGINEERING & TECHNOLOGY LTD.
("Greka Engineering" or the “Company")
 
Interim Results 2014 — Revenue Increases by 61%
 
Greka Engineering & Technology Ltd. (AIM: GEL), the unconventional gas sector engineering and technology business with pipeline, gas compression and power generation assets in China, announces its unaudited results for the half year ended 30 June 2014.
 
 
CORPORATE HIGHLIGHTS
 
·         27 new customers won during 2014, a 25% increase from 2013. Total of 134 customers in China
 
·         Successfully negotiated increased gas processing and electricity price contracts  effective from 1 January 2014
 
·         Expanded to three customers for  power supply, of which one is a  third party
 
OPERATIONAL HIGHLIGHTS
 
·         Sales of CNG dispensers/cylinders increased by 23% to 64 (2013: 52 dispensers/cylinders sold)
 
·         477,720 thousand cubic feet of gas for sale processed, compared to 503,889 thousand cubic feet of gas for sale processed in the same period 2013, a 6% decrease
 
·         5,486,457 kwh of power sales, a 10% increase compared with 4,970,889 kwh of power sales in the same period 2013
 
·         37km of well gas gathering pipeline at the end of H1 2014
·         2.5km of power line constructed, 70.5km of power line at the end of H1 2014
·         No lost time due to injury or accident in this first half year of 2014
 
FINANCIAL HIGHLIGHTS
 
·       Revenue increased by 61% to US$2.7m from US$1.7m over the same period in the prior year
 
·       Loss of US$0.61m (H1 2013: loss of US$1.02m)
 
 
·           Cash and bank deposits of US$2.8m
 
 
Randeep S. Grewal, Executive Chairman of Greka Engineering, commented:
 
"It has become increasingly clear that Greka Engineering & Technology provides a comprehensive solution to companies looking to take full advantage of commercial opportunities offered by the rapidly growing unconventional gas market. Providing  a one-stop-shop to the many new entrants into the sector, that can overcome engineering, infra-structure and technology challenges of creating a cash flow from their producing gas resources, is the immediate and clear opportunity for us”.
 
 
For more information of Greka Engineering, please visit the company website at: www.grekaengineering.com.
 
 
 
Contacts:
 
 
 
Smith & Williamson
Nominated Adviser
Dr Azhic Basirov / David Jones / Ben Jeynes
    +44 20 7131 4000
RFC Ambrian
Broker
Charlie Cryer
           
+44 20 3440 6800
WH Ireland
Broker   
Tim Feather
 
+44 113 394 6600
Walbrook
Media & Investor Relations         
Paul Cornelius / Guy McDougall
+ 44 20 7933 8780
 
 
                                                                                                                                                  
                                                                                                              
 
About Greka Engineering & Technology
 
Greka Engineering & Technology Ltd., (AIM; GEL) was demerged from Green Dragon Gas Ltd. (AIM; GDG) via a dividend in specie and was admitted to trading on AIM in September 2013.
 
Greka Engineering offers turnkey solutions to over 100 upstream, midstream and downstream gas suppliers. The Company's technologies include Compressed Natural Gas/Liquefied Natural Gas (CNG/LNG) compressor equipment, CNG retail dispenser equipment and CBM wellhead extraction technologies. The Company also supplies proprietary Integrated Circuit Card Point of Sale (ICC POS) and Supervisory Control and Data Acquisition (SCADA) software and hardware solutions for the remote management of transmission systems, power facilities, vehicle management and retail services.
 
In addition, the Company invests in, operates and maintains wholly owned assets for its customers in return for service contracts based on the volume management.
 
The Company has historically completed several Engineering, Procurement, Construction and Management (EPCM) contracts including the design, construction and management of gas gathering systems, a gas pipeline in Shanxi Province to the China West-East pipeline, the installation and commissioning of a 10MW gas-fired power facility in the Shanxi province and the construction of CNG retail stations.