Eco Animal Health Group slumps after China slowdown continues


IGas Energy PLC has seen its shares flare up after it signed a deal with CeraPhi Energy, a specialist in repurposing oil and gas assets for geothermal energy.

The two companies will jointly develop geothermal energy projects using specific wells in IGas’s asset portfolio.

The first project will be sited in the Lincoln area on one of IGas’s existing sites.

This will be used to demonstrate the commercial potential for geothermal energy production from repurposing existing oil and gas assets for direct heat for agriculture, residential heating and cooling, and the development of hybrid energy systems generating both heat and power.

IGas chief executive Stephen Bowler said: “The signing of the agreement with CeraPhi is another important step in IGas’s drive to diversify its operations, adding to the ongoing work on hydrogen production and carbon storage and bolstering our established geothermal offering.

“As local authorities and other large-scale users of heat transition away from fossil fuels we are receiving an increasing number of enquiries looking to geothermal as a solution and through this growing pipeline of development opportunities, IGas is well-positioned to deliver a solution to the long-term decarbonisation for heat in the UK.”

Its shares are up 10.97% or 1.7p at 17.2p.

9.01am: Eco Animal Health slumps as China slowdown continues

Shares in Eco Animal Health Group PLC are looking distinctly unhealthy after the company warned of a slowdown in its key Chinese market.

The company, which specialises in pharmaceuticals for the global animal health market, said in a statement for its annual meeting that a slowdown in China in the first quarter had continued in the subsequent three months, due to a decline in pork prices.

Revenue from China in the five months to the end of August was significantly lower than budget, although it expects some recovery in the remainder of the financial year.

Elsewhere, overall revenues in the period have been behind a budget which assumed no seasonality but ahead of the prior year.

All in all, the impact of China resulted in five month revenues being 6% lower than the same time last year.

Chief executive Marc Loomes said: “The commodity price reduction seen in China since our year end has put additional pressure on the pork production industry. Many producers are trading at or below breakeven point, and this has resulted in significant headwinds in our sales efforts. We expect ongoing improvements in the prospects for sales in China, as the current imbalance of supply and demand is rectified and the typical seasonal increase in the demand for [antibiotic] Aivlosin in the winter months develops. Notwithstanding the first half shortfall in China we are encouraged with the revenue performance elsewhere in the group’s international markets.”

But the company’s shares have dropped 60p or 17.14% to 290p.

8.26am: Zenith Energy reports record profitability from Italian electricity business

Shares in Zenith Energy Ltd (ASX:ZEN) have sparked into life after it reported record profitability from its electricity generation business in Italy.

It has been producing an average of around 900 MWh per month at the Torrente Cigno concession, where low-grade natural gas production is used to generate electricity.

The electricity has been sold at an average price of around EUR110 per MWh, compared to the EUR45-EUR55 per MWh seen in September 2020.

The company has brought in net revenues of around EUR110,000 a month, while the current net production costs are approximately EUR35,000 per month.

Luca Benedetto, chief financial officer and managing director of the company’s Italian operations, said: “We are delighted with the record profitability of our electricity production at Torrente Cigno made possible by the favourable price of electricity in Italy at this time…

“It is our intention to replicate our successful model of electricity production at Torrente Cigno on a larger scale in certain African jurisdictions, following the identification of a suitable oil and gas production asset.

“It is important to underline that gas-powered electricity generation is significantly more environmentally friendly than using coal because of the comparatively much lower carbon content.”

The news has seen Zenith’s shares jump 14% to 1.14p.

Elsewhere Enwell Energy PLC has seen a 66% jump in half year revenues to US$41.1mln, thanks to increased production at its Ukraine fields and rising gas prices.

Pretax profits climbed from US$1.2mln to US$13.8mln.

Chief executive Sergii Glazunov said: “2021 has been an excellent operational year so far, with strong production from the MEX-GOL, SV and VAS fields, coupled with the significant recovery in gas prices, contributing to our much improved profitability in the period. We are looking forward to the results of the SV-29 development well and to further progressing our development programme over the remainder of the year. “

The company’s shares have climbed 9.29% to 35.52p.


Please enter your comment!
Please enter your name here