Shares digital

The chief financial officer of Prometheus Energy (PEC:AIM), Jeff Spencer, has resigned after the company unveiled plans to slash its work force by 25% in an attempt to cut costs.

The US renewable energy business makes liquid natural gas (LNG) from waste gases at landfills and mines and recently announced construction has begun on a plant in Lisbon, Utah. It is expected to produce around 12,000 gallons of LNG per day when production starts in the second quarter of the year, which will be ramped up to 22,000 gallons at the end of 2008.

Costs, however, have soared and the company reported a net loss of $8.3 million at its interim results, more than double the half year losses the previous year at $3.6 million. It says the head count reduction, coupled with a consolidation of its offices will lead to immediate savings. ‘The realignment of the business will have the benefits of both increasing focus and of reducing costs as we move to the next phase of development,’ says CEO Kirt Montague.

There were high hopes for the company when it first floated in 2006 as its technology, which cleans the waste methane gas and freezes it into LNG, was thought to be world’s first. However, shares have nosedived from highs of 100p, when production first began in 2007, to current 15.5p, valuing the company at just £9.3 million.

Shares says: Cost reduction is a positive, as long as it doesn’t hit growth ambitions, but more needs to be done to get the shares going again.