Velocys PLC (LON: VLS) share price has fallen by 19.7% in the past two days in a pullback coming after the sharp rally that began in early October.
The last major announcement from Velocys was the release of its half-year earnings results on September 23, 2021, where its losses shrunk even further.
The sustainable jet fuel company generated £8.2 million in revenues during H1 2021, of which £3.3 million was gross profits from its first commercial contract.
Velocys is currently spearheading the development of the Altalto Immingham jet fuel refinery on behalf of British Airways located on the South Humber Bank.
However, while the company had a gross profit from its first commercial contract, it booked an operating loss of £2 million compared to £2.6 million in a similar period last year.
Velocys has drastically reduced its operating losses, having reported an £11 million loss in H1 2018 and a £5.2 million loss in H1 2019, followed by a £2.6 million loss in H1 2020.
The green jet fuel company works closely with the British government to develop industry standards for sustainable aviation fuels.
The company is also developing another project in the USA known as the Bayou Fuels refinery in Mississippi. The project is part of the Biden administration’s recently announced extensive programme of policy support to develop sustainable aviation fuels supply.
The recent rally in Velocys shares could have been a delayed market response to the impressive results reported by the company in late September, with the latest downtrend being a typical pullback associated with a parabolic rally.
Henrik Wareborn, Velocys CEO, said: “Whilst there is a significant lead time to construct and deliver commercial-scale biorefineries, Velocys is confident that having first of a kind projects in FEED with world-leading partners will provide us with many more commercial opportunities to offer executable pathways to achieve the ‘net-zero’ targets of our clients globally.”
Investors looking for exposure to Velocys shares should find the 5.5p to 5.3p support zone quite attractive if the price pulls back to the zone, which could support a bounce higher.
*This is not investment advice.
Velocys share price.
Velocys share price has fallen 19.68% in the past two days from a high of 7.395p to their current price of 5.940p.
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