Synthesis Energy Systems (SYMX) Reports Q4 Loss of $0.06/Share

Synthesis Energy Systems (Nasdaq: SYMX) reported Q4 EPS of ($0.06), versus ($0.09) reported last year. Revenue for the quarter came in at $4.36 million.

"Our focus during this past fiscal year has been on delivering results from our joint venture operations in China and on laying a strong foundation for commercialization. Now, with our technology proven at our operating plants, the company is partnering with major global technology, manufacturing and operating companies to facilitate entry into the large global energy and chemicals markets where we believe our technology can deliver value and make a positive impact," said Robert Rigdon, SES President and Chief Executive Officer. "Our technology's success is gaining the attention of major companies around the world. Our core technology differentiation for cleanly and economically processing a wide range of solid-based energy feedstocks, which we believe is the future of gasification, is the key that has enabled our partnering success during our fiscal 2014."

"Our initial strategic partnerships are with GE Packaged Power, Midrex Technologies and Zhangjiagang Chemical Machinery (ZCM). Together with GE, we are targeting the global market for distributed power generation. We signed our first Letter of Intent in January 2014. Our business development effort, along with collaborators, IEG and Tuten, are progressing the development of a 160 MW power plant offering for K-Electric, using SES Gasification Technology and GE turbines," said Rigdon. "Our ZCM China joint venture, Jiangsu Tianwo-SES Clean Energy Technologies (T-SEC), is an example of a regional partnership extending across multiple industrial sectors in China and select Asian markets. This partnership, which launched operations in April, is intended to open new channels to the market and strengthen our manufacturing and fulfillment capability. Most recently in late May, we entered into an exclusive agreement for the joint marketing of coal gasification-based Direct Reduced Iron (DRI) facilities with Midrex and, together, we have engaged T-SEC to assist us with our initial focus, which is on DRI in China. This collaboration is intended to provide an economical and clean technology product offering for the production of Direct Reduced Iron product for the steel industry from coal-based energy, versus natural gas."

Rigdon added, "We believe the combined strengths of these partnerships and joint product offerings will lead to faster, multiple deployments of SES's clean energy gasification systems to address the ever-increasing and varied needs of the global energy and chemicals landscape. We are hopeful that these initial partnerships will begin to contribute to our financial results during fiscal 2015 while we continue to push new initiatives forward, to expand our global footprint."

"Also in fiscal 2014, we assumed operational control of Xuecheng Energy's methanol operations adjacent to our Zao Zhuang (ZZ) JV plant and started producing and selling methanol during our second fiscal quarter. We have taken ZZ from zero revenue the previous two years to delivering $14.9 million this past fiscal 2014. This was accomplished in an exceptionally challenging methanol price environment during the last six months in China. Because of the additional coke oven gas feedstock that we expect to come on line soon, combined with other technical and commercial optimizations now underway, we expect continuing improvement in financial results from ZZ. To that end, we have placed more experienced and high level resources to strengthen and accelerate operational capabilities and improve the financial performance of all our global growth initiatives, including our core operating plants, China joint venture, DRI steel and distributed power," concluded Rigdon.

For earnings history and earnings-related data on Synthesis Energy Systems (SYMX) click here.

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