Environmental Power Corp. Q2 results well below the Street

Shares of Environmental Power Corp. (Amex: EPG) are trading lower today following weak second quarter results that fell below Wall Street’s estimates and reported delays on its projects. 

For the three months ended June 30, the Portsmouth, NH.-based owner and operator of renewable energy production facilities recorded a net loss of from continuing and discontinued operations of $7.1 million, or $0.71 per share, well below the consensus of three analysts polled by Thomson Financial of a loss of $0.32 per share. The company incurred a net loss from continuing operations of $3.9 million, or $0.39 per share, compared with a net loss of $2.9 million, or $0.30 per share, a year earlier.

Environmental in May announced that it was in the process of finalizing negotiations to divest a leasehold interest held by the company’s subsidiary, Buzzard Power Corp. Environmental said it accounted for the divestiture as part of discontinued operations and will write off Buzzard’s net assets, which Environmental estimates will result in a gain of $3 million for the quarter.

Revenues for the quarter increased slightly, to $327,000 from 290,000, in the second quarter of 2006.

Environmental owns a license in North America for a technology known as anaerobic digestion technology, which is used to generate energy by extracting methane gas from animal waste.

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