RNS Number : 6299E
GTL Resources PLC
30 September 2008
FOR IMMEDIATE RELEASE:
30
September 2008
GTL Resources PLC ("GTL" or the "Company")
AGM Statement
GTL, the renewable fuels company with corn ethanol operations in Illinois, will hold its
AGM today at 10.00am.
The Chairman will make the following statement on trading:
The underlying operating profit in the first six months to 30 September 2008 was in line
with management's expectations.
The Company reported that for the period, ethanol production volumes continued to run in
excess of nameplate capacity (the technology
provider's production guarantee) at a 57 million gallon per annum (mgpa) rate. Operating
efficiency measurements, a key indicator of plant
performance, were in line with forecast.
Despite this continued strong operating performance, GTL expects to report a negative
underlying PBT for the period due to soft industry
margins which persist.
In addition, during the six months to 30 September 2008, the corn markets experienced
unprecedented volatility and the Company incurred
$4 million in losses (in addition to the underlying performance) on corn positions held
against October to December deliveries. The Company
will account for these losses in its first half results, even though the cash impact will be
in the second half. The magnitude of GTL's
hedging loss was small compared with several industry peers who have recently commented on
their 30 September 2008 results.
The Company expects closing cash balances on 30 September 2008 at the GTL corporate level
will be approximately $9 million. In addition,
the existing funding arrangements at Illinois River Energy (IRE), a subsidiary of GTL, provide
the Company with sufficient liquidity to more
than cover the anticipated cash outflow from its corn losses.
With the volatility of the corn futures markets, GTL has now limited its corn hedging
activities to those purchases necessary to cover
its ethanol sales and daily operational needs.
Plant Expansion Ahead of Schedule and Under Budget
The Company reported that the IRE 50 mgpa expansion, which will double the plant's
capacity, is on track to be completed ahead of
schedule and under budget. Management now expect that the expansion will come on line and ramp
up late in GTL's 3rd quarter ending 31
December 2008, and begin contributing positive cash flow from incremental volume in the 4th
quarter.
Illinois River Energy awarded $4 million Grant
The Company is pleased to report that the Illinois Department of Commerce and Economic
Opportunity, Bureau of Energy and Recycling has
awarded IRE an unbudgeted cash grant of $4 million to aid in the incorporation of second
generation enabling technologies at IRE.
For further information please contact:
GTL Resources PLC
Richard Ruebe, CEO +44 1642 794000
Michael Brennan, Finance Director +44 1642 794000
Arbuthnot Securities Limited
James Steel +44 2070 122100
Antonio Bossi +44 2070 122116
Buchanan Communication
Charles Ryland +44 2074 665000
Ben Romney +44 2074 665000
Notes to Editors
About GTL Resources and Illinois River Energy
GTL's strategy is to produce ethanol from corn and other feedstocks with quality
counterparties. GTL manages all aspects of a project:
finance, feedstock supply, production and marketing. In 2005, GTL acquired the majority
interest in IRE to build a 50 mgpa ethanol plant at
Rochelle, Illinois. In 2006, the IRE Plant commenced production on time and on budget. In
2007, GTL raised further funds to finance the
expansion of the IRE facility from 50mgpa to 100mgpa. The expansion is expected to commence
operations late in 2008. The Company intends
to maximize IRE's plant profitability through investment in process control enhancements and
other second generation technologies emerging
in the ethanol industry. In addition, GTL intends to expand within the ethanol industry by
entering into strategic partnerships that are
developing around these second generation technologies.
This information is provided by RNS
The company news service from the London Stock Exchange
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