Although Quadrise Fuels (QFI) managed to reduce its full-year operating loss by around a third to £4.2m, financial performance is largely immaterial as the group moves towards commercialisation of its low-cost alternative to heavy fuel oil, MSAR.
The big news for Quadrise came after the year-end, when approval was given for the gradual utilisation of MSAR technology within the refining segment of Saudi state-owned oil giant Aramco. Saudi Arabia wastes billions of dollars annually by burning crude oil and imported high-grade distillates in order to generate power. Its rulers want to put an end to this waste and MSAR has been identified as a means to this end.
The other significant venture under way is with Danish shipping giant Maersk. A maritime version - MSAR 2 - is now being tested in seaborne trials that should be completed by the year-end. If these trials are successful, it could be hugely significant for Quadrise, particularly given new EU restrictions on the shipping industry that will force companies either to fit exhaust filters to their ships or switch to a different type of fuel.
After raising £3.5m after the year-end, Quadrise directors believes it is now adequately funded through to commercialisation.
Edison gives an indicative market value of £126m (16.3p a share) based on a DCF model.
| QUADRISE FUELS INTL (QFI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 9.25p | MARKET VALUE: | £71m | |
| TOUCH: | 9-9.5p | 12-MONTH HIGH: | 13p | LOW: 4.25p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE | 1.79p* | NET CASH: | £1.66m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 4.73 | -5.51 | -1.10 | nil |
| 2010 | 0.07 | -3.82 | -0.86 | nil |
| 2011 | 0.04 | -6.64 | -1.19 | nil |
| 2012 | 0.04 | -4.21 | -0.58 | nil |
| % change | - | - | - | - |
*Includes intangible assets of £4.98m, or 0.64p a share | ||||
