MyCelx shares fall on project delay

Shares in oil company MyCelx fell after the company said a major project was delayed.

At 1333 BST shares were down 2.27% to 1289p.

In a trading update ahead of its half-year results the company said sales were up 14.6% from $7.5m to $8.6m.

However, it revised its guidance for the full-year, citing delays in a major project which it said now had an unclear timetable.

The company said it expected total revenue to be in the range of $15-16.5m, which would be an improvement of 10-20% on the year before.

MyCelx said trading conditions in the first half of 2015 were challenging and said such market conditions were likely to continue throughout the second half of the year.

Numis moved its rating from ‘buy’ to ‘hold’ and kept its target price at 144p.

Analysts said the delays and subsequent earnings downgrade reflected severe constraints on capital expenditure across the value chain in global oil and gas markets.

“Given the bearish signals that continue to weigh on oil prices and the uncertainty for ROI in the sector generated by the continued volatility in oil prices, we remain cautious on the speed of the recovery in capital expenditure over the near to medium term,” Numis said in a note.