Quadrise - profile image - oil-rig28112019

Quadrise Fuels International

LN: QFI

£86.5m market cap

6.22p last close

Quadrise Fuels International is the innovator, supplier and global licensor of disruptive residual oil technology that produces a synthetic, enhanced heavy fuel oil called MSAR. The technology enables refiners to produce MSAR for use as a low-cost substitute for heavy fuel oil.

Investment summary

Quadrise is still pre-revenue. Stripping out share option and exceptional charges, operating losses narrowed by £0.4m y-o-y in FY H121 (calendar H220) to £1.4m, reflecting lower production and development and administrative costs. Free cash outflow decreased by £0.4m to £1.3m. Post-period end, the group completed a placing and oversubscribed open offer, raising £7.0m (gross) at 2.7p/share. Management expects it now has the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows by July 2022.

Y/E Jun
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 0.0 (2.8) (3.0) (0.32) N/A N/A
2020A 0.0 (3.1) (3.4) (0.32) N/A N/A
2021E N/A N/A N/A N/A N/A N/A
2022E N/A N/A N/A N/A N/A N/A
Industry outlook

Quadrise successfully completed a pilot trial at a customer site in Morocco during calendar H220 and launched its biofuel variant, bioMSAR which produces 20–30% lower carbon dioxide (CO2) emissions as well as lower nitrogen oxide and particulates. The company is currently preparing for larger scale trials in Morocco, a pilot trial in Utah and on-vessel trials with MSC Shipmanagement, having signed a joint development agreement with the shipping company this January. Management notes that these activities could potentially result in the first commercial shipments of MSAR by the end of calendar 2021.

Last updated on 05/05/2021
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 98.1 95.4 319.7
Relative* 90.1 80.8 237.5
52-week high/low 6.3p/1.2p
*% relative to local index
Key management
Jason Miles CEO
David Scott Group Financial Controller
Mike Kirk Executive Chairman