21st Mar 2016 10:13
LONDON (Alliance News) - Quadrise Fuels International PLC Monday said it believes it has sufficient funding to keep going until it begins generating revenue in 2017 as the company continues to advance its two major projects.
The company, which is focused on its alternative to fuel oil, MSAR, targeted at the shipping, refining and power generation markets, reported a pretax loss of GBP2.4 million in the six months to the end of 2015 compared to the GBP2.2 million loss booked a year earlier.
That was the result of administration expenses rising to GBP1.1 million in the period from GBP700,000 the year before and its production and development costs increasing to GBP834,000 from GBP552,000. Those were partly offset by its share option charge falling to GBP460,000 in the half from GBP1.1 million.
The company currently generates negligible amounts of revenue but is advancing its projects that should see revenue being generated in 2017.
Quadrise said its Letter of No Objection programme is proceeding as planned. Contracts were signed with Maersk Line A/S and Compania Espanola De Petroleos SAU to proceed with the programme in 2016 using Marine MSAR, which will be produced at the CEPSA San Roque refinery and supplied via the Algeciras bunkering port.
The commercial scale MSAR manufacturing unit being supplied by Quadrise under that project has been fabricated and shipping to the refinery commenced early March 2016.
"The Letter of No Objection programme will start when Marine MSAR supplies are available for loading at Algeciras, and will continue for up to 10 months to provide approximately 4,000 hours of engine operating data," said the company.
"Consideration and commencement of the near term commercial roll-out should take place through 2017, with implementation contingent on Letter of No Objection progress," it added.
Quadrise's other project with a client in Saudi Arabia, which will see a pilot plant produce MSAR fuel and then trialled in a 400 megawatt generation unit, is expected to begin trials in the Autumn of 2016 and completed by Spring 2017.
"I am especially pleased to report that progress of lead projects has become better aligned with forecasts. Assurance of delivery has also been strengthened over the review period by the transition of projects into multi-party coordinated development programmes," said Executive Chairman Ian Williams.
"A review of the 2016 business plan and funding assessment confirmed that the group holds sufficient funds to progress the lead programmes through to early commercial revenues from the Marine programme as now anticipated during 2017," said the company.
Cash at the end of the year stood at GBP6.5 million, a drop from the balance of GBP9.8 million at the end of 2014.
Quadrise shares were down 10% to 13.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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