Quadrise, the emerging supplier of
MSAR, a low-cost alternative to fuel oil in the shipping, refining and power generation markets, has announced its unaudited interim results for the six months ended 31 December 2015.
During the six-month period, Quadrise reported an operating loss of GBP 2.37 million (compared with the operating loss of GBP 2.25 million posted for the six months to 31 December 2014), of which GBP 0.46 million relates to a non-cash charge for share options.
Cash reserves were GBP 6.50 million as at 31 December 2015 compared with GBP 9.81 million as at 31 December 2014. This was said to be "sufficient to carry the group through to sustainable early revenues from its major projects, based on the current programme timescales".
Summary of key events during the last 9 months
Contracts were executed with Maersk Line A/S and Compañía Española De Petróleos S.A.U. to proceed with the Letter of No Objection (LONO) programme in 2016 using Marine MSAR to be produced at the CEPSA San Roque refinery and supplied via the Algeciras bunkering port.
The project is said to be proceeding as planned with fuel availability targeted by mid-2016. The commercial scale MSAR Manufacturing Unit and associated equipment to be supplied by Quadrise has been fabricated and shipping to the refinery commenced early March 2016. The LONO programme is due to start when Marine MSAR supplies are available for loading at Algeciras, and continue for up to 10 months to provide approximately 4,000 hours of engine operating data. Interim engine inspections and related assessments are planned. Consideration and commencement of the near term commercial roll-out is expected to take place through 2017, with implementation contingent on LONO progress.
Quadrise International Limited says it is also "finalising terms", to be executed shortly with a Saudi client, which will record the agreement to proceed with the commercial scale 'production to combustion' pilot demonstration project in which MSAR fuel will be produced in a major refinery, shipped to storage at a large coastal power plant complex, and trialled in a 400-megawatt MW generation unit. The target date range for the combustion trial, which sets the timetable for all contributing parties, has also been set, Quadrise says. The coordinating engineering contractor will be responsible for integrating the activity programme in which the responsibilities and contributions of all participants will be defined. The trial is expected to start in the Autumn of 2016 and be completed by Spring 2017.
Support resources and specialist management capacity have been expanded in preparation for the anticipated transition to multi-site, multi-client and geographically diverse operations. The Quadrise research facility global service base in the UK has been further expanded with facilities to support the extended scope of operations, logistics and product development services. Further selective recruitment of technical support staff is planned through 2016. A contract for research services has been executed with the University of Surrey.
The board has appointed Mike Kirk, who joined the Quadrise board as a non-executive director in December 2015, to succeed Ian Williams as Executive Chairman of the Group from April 1, 2016.
Commenting on the results,
Ian Williams, Executive Chairman, said: "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.
"Much has been learnt by the Quadrise team who are now very well equipped to exploit future opportunities which are certain to follow successful lead project results. The future for our specialised business looks more positive than ever before and the Company is fully prepared and ready to meet the challenges of expansion and growth.
"I feel very privileged to have had the opportunity to lead the Company to this stage and, as a shareholder, to leave in the knowledge that it is in very safe and highly capable hands."
