Companies: GTL   

A maiden profit from US ethanol producer GTL Resources failed to move the shares, which remain stuck at 97p compared with a recommendation level here in June last year of 263p. The company recorded an $8.5 million (£4 million) pre-tax profit for the six months to the end of September, which sits well beside a £31 million market capitalisation. Production from the first plant exceeded nameplate capacity and both yield and energy usage were better than envisaged. Doubling of capacity to 100 million gallons a year is underway – and will require £13 million of equity investment.

The market remains fixated on rising corn and falling ethanol prices. GTL’s proximity to the Chicago market gives it a competitive edge, however, and the shares look downright cheap on all but the bleakest scenario for ethanol. Continue to hold.

GTL Resources	AIM	£4m	12.50p	-4.50p
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Other company articles:
GTL into the black			03/07/2008
GTL turns a profit			16/11/2007
Maiden profit from GTL			13/11/2007
GTL Resources doubles up at Rochelle			06/07/2007
GTL seeks £13m			02/07/2007