Environmental Power sees loss grow
Environmental Power Corp. reported an increase in its net loss for the second quarter of 2007 and the six-month period ended June 30.
The Portsmouth-based company also reported that in May 2007, it entered into negotiations finalizing the disposition of a leasehold interest held by subsidiary Buzzard Power Corp. in a Pennsylvania power facility. Consistent with that activity, the assets and liabilities of Buzzard have been accounted for as discontinued operations in the company’s quarterly report. The estimated net effect of the transaction will result in a gain of approximately $3 million.
The company reported a net loss from continuing and discontinued operations of $7.1 million, or 71 cents per share on 10 million weighted average common shares outstanding for second quarter 2007, up $4.2 million from the net loss of $2.9 million, or 30 cents per share on 9.6 million weighted average common shares outstanding for the same period in 2006.
Revenues from continuing operations increased to $327,000, up 13 percent from the $290,000 in revenue reported for second quarter 2006.
EPG subsidiary Microgy Inc. recently entered into an agreement to sell 65,000 tons of carbon credits per year for the 2007-2011 period. The carbon credits will be generated from three Wisconsin facilities. In accordance with the sale agreements with participating farms sale proceeds will be used to repay notes owed to Microgy.
The company plans to use its renewable energy production technology at new project sites in order to create a stable revenue base.
The company also is investigating the possible inclusion of new technologies for the production of energy from animal and organic waste.
EPG’s Huckabay Ridge Project is expected to reach full commercial operations later this year, but because of excessive recycling of water used for conditioning dry-lot manure the Huckabay facility was unable to meet its targeted biogas output on a number of its digesters. This high level of recycling was attributed to flooding at the on-site storage lagoons brought on by higher than normal rainfall and systems are being reviewed to better address future problems.
Progress continues at three sites in Texas and California. The company expects ongoing construction at these and other projects to increase capital expenditures late in the fourth quarter. – TRACIE STONE
