OPT widens losses as PowerBuoy gears up for customers

OPT's PB3 PowerBuoy (Photo: OPT)

US-based ocean energy solutions provider Ocean Power Technologies (OPT) has recorded 50% increase in net loss for the second quarter of fiscal 2019 as compared to the same period last year.

In the financial results for the fiscal second quarter of 2019 ended October 31, 2018, OPT reported the net loss of $3.9 million, compared to a net loss of $2.6 million for the same period in 2018.

The increase in net loss for the quarter, as compared to the same period in prior year, is mainly attributable to higher upfront engineering and product development costs associated with the new customer contracts, and the costs associated with building additional PowerBuoys, according to OPT.

Revenue for the second quarter of fiscal 2019, 2018 was $0.1 million, compared to revenue of $0.1 million in the same period last year. Revenues in fiscal 2019 comprised of new customer contracts underway with Eni, Premier Oil, and Enel Green Power, OPT informed.

George H. Kirby, President and Chief Executive Officer of Ocean Power Technologies, explained, “We are now in the process of executing multiple contracts to supply PowerBuoys in targeted markets across various industry sectors.”

“In addition to the lease of our PB3 PowerBuoy for use in the Adriatic Sea by Eni, we are also in the process of finishing the engineering design work on a PB3 PowerBuoy to be delivered to Premier Oil for deployment in the Central North Sea.

“Moreover, with our deep pipeline of commercial opportunities and continued increasing demand for our products, we believe we will be able to lease or sell a growing number of PB3 PowerBuoys to our targeted markets around the globe.”

“We believe that the expansion of our suite of complimentary products that leverage the core technology of the PowerBuoy, including new subsea battery solutions and a hybrid PowerBuoy, provides us further opportunities to monetize these existing technologies. This expansion will enable our industry recognition as an innovator in offshore power to continue to grow.”

 

OPT’s half-year results for the fiscal 2019

 

Revenue for the first six months of fiscal 2019 was $0.2 million, compared to revenue of $0.3 million for the first six months of fiscal 2018.

According to OPT, the slight decline in revenue is due to the timing of the launch of new customer contracts during the first half of fiscal 2019 with Eni, Premier Oil, and Enel Green Power.
The net loss for the first six months of fiscal 2019 was $7.1 million, compared to a net loss of $5.2 million for the same period a year before, marking a 36.5% more loss this year.

The increase in net loss for the second quarter of fiscal 2019 as compared to the same period in fiscal 2018 is mainly attributable to higher upfront engineering and product development costs associated with the new customer contracts, and the costs associated with building additional PowerBuoys, OPT informed.

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