The net loss narrowed to €2.07 million from €3.2 million, while its EBITDA loss improved to €1.1 million from €1.6 million
LONDON: EQTEC plc, a syngas technology company, reported a sharp drop in first-half revenue but highlighted a significant improvement in gross margins as it pivots away from high-risk project development towards a leaner, intellectual property-focused model.
The company, which specialises in technology that converts waste into energy and biofuels, said on Monday that revenue for the six months to June 30, 2025, fell to €0.6 million from €1.4 million a year earlier.
However, its gross margin surged to 82% from 53% in full-year 2024, which it attributed to a strategic shift toward high-margin technology licensing and services.
The net loss narrowed to €2.07 million from €3.2 million, while its EBITDA loss improved to €1.1 million from €1.6 million.
EQTEC has faced significant headwinds from project delays and partner restructurings beyond its direct control. Key projects in Italy, France, and Croatia have required renegotiation or are seeking new feedstock supplies after operational changes by partners.
“In Italy, the Company has advanced €320,000 in shareholder loans to Italia MDC but ceased unilateral support,” EQTEC stated, adding it has agreed on a controlling investment and debt restructuring with Quainstone.
In the United States, the North Fork Community Power project exited Chapter 11 bankruptcy with EQTEC retaining only nominal equity. Meanwhile, the Blue Mountain project secured the USDA as a financial sponsor and, in principle, $39 million in debt financing, but must close funding in 2025 to preserve a key eligibility for EQTEC to supply its technology.
Despite the near-term “volatility,” the company is positioning itself to capitalise on the growing global push for Sustainable Aviation Fuel (SAF) and advanced biofuels.
A key milestone was the validation of its syngas-to-liquids pathway with strategic investor CompactGTL, whose pilot plant produced high-quality synthetic crude. EQTEC is now working to relocate the plant to France for extended trials and is in advanced discussions with investors in the UAE.
“International policy momentum towards Sustainable Aviation Fuel and advanced biofuels aligns strongly with our technology and commercial strategy,” said Ian Pearson, Chairman of EQTEC.
CEO David Palumbo added that the company demonstrated “resilience and ingenuity” in reconfiguring business cases. “Our ability to validate synthetic fuels production and attract interest from new strategic investors demonstrates the long-term potential of our model.”
To support its working capital, EQTEC raised £1.75 million (€2.0 million) in equity from CompactGTL during and after the reporting period. The company also implemented a roughly 60% reduction in annualised payroll costs at its Spanish subsidiary as part of a operational rationalisation.
The company’s outlook statement noted a “going concern assessment reflects the reality that we continue to face as we seek to manage material risks related to funding and cash flow.” It has an option to require a further £1.5 million equity subscription from CompactGTL over the next 12 months.