Environmental Power releases 1Q results
A decrease in revenue and an increase in costs and expenses contributed to an overall net loss for Environmental Power Corp.
In its first-quarter 2006 report, Portsmouth-based Environmental Power officials announced a net loss of $1.4 million, which translates into a loss per common share of 15 cents. First quarter 2005 saw a net gain of $406,000 or gain per common share of six cents.
First-quarter 2006 revenues were down by $807,000, or 5 percent, to $14.4 million compared to last year’s revenue of $15.2 million.
The company’s costs and expenses increased by $1.1 million, or 8 percent, to $15.8 million during the first quarter, up from $14.7 million from the same period in 2005.
Increased power rates and improved operating capacity of Environmental Power subsidiary, Buzzard Corp, resulted in an increase in a $658,000 increase in power generation revenues totaling $14.5 million compared to first quarter 2005 revenues of $13.9 million.
Environmental Power subsidiary Microgy Inc. reported a decrease in sales to $883,000 during first-quarter 2006, down from $1.3 million from the same time last year. This was attributed to the company’s move from focusing on the sale of facilities to an ownership model under which Microgy will construct and own its own facilities generating revenues from the ongoing sale of the biogas or pipeline-grade gas it produces. This also attributed to the $773,000 decrease in cost of goods sold. An increase in general and administrative expenses of $572,000 offset this decrease. – TRACIE STONE