Plunge in Crude Weighs on Quadrise Results, Dents Investor Confidence

However, the company reported slightly smaller losses that the year before.

The crash in crude prices over the past year has weighed on Quadrise Fuels International plc (Quadrise)'s full-year results and dented its investor's confidence, though the alternative fuel company's loss this year was slightly smaller than the year before at £5.9 million ($9.1 million), the company announced in its full-year fiscal report for the year ended June 30, 2015.

Quadrise, whose main product is its emulsion MSAR fuel, said that its net income also saw an improvement over the previous year at negative £4.9 million ($7.6 million) compared to negative £5.9 million ($9.1 million) last year. 

Although revenues came in at £66,000 ($102,000) up from nil earnings last year, the plunge in crude prices was said to be directly responsible for various project delays and the cancellation of a planned joint venture with Ecopetrol in Columbia.

"With oil revenues falling, venture participation was declined by Ecopetrol, and Quadrise could not have gone forward without exposure to 'merchant plant' risk in any combination with third party venture partners," the company said.

"The past year has been especially challenging for Quadrise on many fronts but, as advised to investors during September, very material progress has been made in our key programmes, and much of the future pathway to commercial operations is now contractually underpinned."

However, the company said that tighter finances among companies worldwide meant that Quadrise has in some cases had to "bear a greater share of pre-commercial costs where this will facilitate client commitment and reduce time to market."

In general, "the global oil price collapse, related delays in settling terms with key counterparties and legal constraints on interim disclosure combined with adverse stock market conditions clearly impacted investor confidence," Quadrise said. 

Nevertheless, Quadrise Executive Chairman Ian Williams was philosophical in his assessment of the performance and the future.

"Very meaningful progress was made over the past year culminating in the achievement of several key objectives," he said.

"All things considered, the Company is undoubtedly better resourced and positioned to succeed than ever before."

The company added that it had laid the groundwork for its various pilot programs, including its project in Saudi Arabia.

Earlier this year, Ship & Bunker reported that Spain's Compañía Española de Petróleos, S.A.U. (CEPSA) had also signed a deal to trial supplying MSAR fuel to Maersk Line ships.