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(01/05/08) Trading Update

Company GTL Resources PLC Trading Update
TIDM GTL
Headline Trading Update
Released    07:00 01-May-08
Number 5096T


RNS Number:5096T

GTL Resources PLC

01 May 2008

FOR IMMEDIATE RELEASE

01 May 2008

GTL Resources PLC

("GTL" or the "Company)

 

Change of Nominated Adviser and Trading Update

 

GTL Resources PLC (AIM:GTL), the US based ethanol production and project

development  company, is pleased to announce the appointment of Arbuthnot

Securities Limited as  Nominated Advisor and Broker to the Company with

immediate effect.

 

The initial 50 million gallon per annum ("mgpa") nameplate ethanol plant has

achieved production of 114% of nameplate capacity during the 12 months to 31

March 2008. This compares favourably to US quoted industry peers for their years

to 31 December 2007. The plant's strong ethanol production has been fully sold

during the period, with over 90% of sales continuing to be made into the main

target market of Chicago, thereby allowing the Company to benefit, in terms of

transportation costs, from its proximity to market.

 

The Company anticipates that whilst turnover and operating profit for the year

ended  31 March 2008 will reflect a weaker second half, due to more difficult

trading conditions,  they will nonetheless continue to be in line with market

expectations.The Company does,  however, expect to record a US$2.6million non-

cash and non-operating provision  reflecting a mark to market of interest rate

swaps on part of its senior debt.

 

Expansion Progress

 

Construction commenced as planned in August 2007 on the expansion project to

double capacity from 50 mgpa to 100 mgpa of nameplate capacity at the Company's

ethanol plant at Rochelle, Illinois. The project, the majority of which is on a

fixed price contract, continues to proceed both to schedule and on budget. The

fully funded project includes a $10million project contingency, none of which

has been drawn upon.

 

Richard Ruebe, GTL's CEO, commenting on the trading update, said:

 

"At a time when some ethanol projects are disclosing project delays and cost

overruns we are encouraged by the continued excellent progress being achieved

with the expansion at Rochelle - it remains on budget and to schedule.

 

With the efficient running of the plant at above peer group rates, we look

forward to reporting on continued progress at the site."

 

For further information please contact:

 

GTL Resources PLC

Michael Brennan, Finance Director Tel;                           +44 1642 794000

Richard Ruebe, CEO Tel; U.S.                                     +1 312 474 7845

 

Arbuthnot Securities Limited

James Steel                                                     +44 20 7012 2100

Antonio Bossi                                                   +44 20 7012 2116

David Cunningham                                                +44 20 7012 2082

 

Buchanan Communication

Charles Ryland Tel;                                             +44 20 7466 5000

Nick Melson Tel;                                                +44 20 7466 5000

 

 

 

                      This information is provided by RNS

            The company news service from the London Stock Exchange

 

END

 

 

 

 

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