Based on preliminary figures, OTI Greentech AG (WKN A0HNE8) posted a lower operating loss (EBITDA) of EUR 0.48 million in the first six months of 2017 after a loss of EUR 0.7 million in the first half of 2016. At EUR 5.3 million, consolidated revenues in the first half of 2017 were up around 5 percent on the prior-year figure of EUR 5.0 million.
As regards some of VTT’s projects, the Management Board currently has to assume that the resulting revenues will not be generated until 2018 and can therefore only be recognized in the coming year. Against this backdrop, the Management Board has decided to update its guidance for revenues and operating profit (EBITDA) for the full year 2017. The Management Board now expects revenues to increase considerably compared with the 2016 figure of EUR 8.8 million and EBITDA to improve significantly. The previous guidance called for slightly positive EBITDA and an increase in revenues to EUR 16 million.
OTI Greentech will publish unaudited figures for the first six months of 2017 in single-entity financial statements by the end of September 2017.
Information and explanations of the issuer regarding this announcement:
Explanatory section
Sharp improvement of negative EBITDA
OTI Greentech managed to achieve this improvement in earnings in the first half of 2017, although an investment of around EUR 300,000 for the further expansion of the West African business of VTT Maritime weighed on earnings in the reporting period. The Group also incurred one-off costs because of the debt-to-equity swap in the first half-year.
Successful start of the cooperation agreement with KMI
The cooperation agreement signed in May with KMI Cleaning Solutions, one of the leading providers of chemical cleaning agents and equipment for the tank washing market in the USA and Canada, has been successfully launched. OTI Greentech expects this collaboration to make significant contributions to earnings in upcoming quarters.
VTT Maritime West Africa Limited, which specializes in oil, gas and maintenance projects, is in discussions for several significant projects in Africa, as planned. Since its founding in early 2016, the company has been able to position itself as an attractive local project partner. OTI Greentech also expects this region to make significant contributions to revenues over the next years.
The integration of Uniservice Unisfe SrL (“USUS”), a global supplier platform for chemicals, fire protection and safety equipment for the shipping industry, is proceeding according to plan. A first major order has been received after a sales agreement with a partner in Argentina was signed.