Quadrise Posts Half-Year Loss, Says Production of its MSAR Emulsion Fuel is Poised to Begin

by Ship & Bunker News Team
Tuesday March 31, 2015

Quadrise Fuels International plc (QFI) Monday announced an operating loss of £2.2 million ($3.3 million) for the six months to 31 December 2014.

The emulsion fuels company added to its accumulated losses to date, now totalling £68.0 million ($100.7 million).

However, the company saw its first revenues of £58,000 ($86,000) during the six months and said production of its MSAR oil-in-water fuel is poised to begin.

"Current expectations are that contract terms for the first commercial production of Marine MSAR fuel will be settled and production to start the [Letters of no Objection] LONO programme should be available Q4 2015," said the company.

"On success, consideration of the commercial roll-out should take place in mid-2016."

QFI said arrangements have taken longer than expected.

"Unexpected challenges over the past six months, associated principally with the sudden fall in oil prices, impacted the progress of our key programmes," said Executive Chairman Ian Williams.

"Fortunately this effect has passed and we are very much on track in all respects."

QFI said these delays had hurt investor confidence, its share price having fallen around 75 percent since the middle of last year.

Nonetheless, the group insisted the outlook for the future was good despite low oil prices.

"Analysis has demonstrated that the economics of the Quadrise proposition remains sound at an oil price as low as US$40 per barrel, though the value-add will, of course, be more attractive at $80 per barrel," said Williams.

Commenting in Monday's half-year report, Williams also said that QFI is not dependent on fuel oil demand growth.

Ship & Bunker News Team
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