Quadrise Fuels International PLC Stmnt re Share Price Movement (8730E)
February 13 2015 - 5:55AM
UK Regulatory
TIDMQFI
RNS Number : 8730E
Quadrise Fuels International PLC
13 February 2015
13 February 2015
Quadrise Fuels International plc
("QFI", "Quadrise" or the "Company")
Statement re Share Price Movement
The Company notes the fall in its share price today. The
collapse in the oil price since Q4 2014, and related uncertainty in
the energy sector, has clearly affected investor sentiment. While
this has limited longer term relevance for the leading Quadrise
projects and their prospects, this has understandably concerned
shareholders. The continuing volatility of global crude oil prices
has caused instability across the industry and consequential
extensions to decision making processes.
As previously noted, the Quadrise MSAR process adds value in
refining by replacing high value distillates (principally diesel)
with water and chemicals to create a substitute for conventional
heavy fuel oil. The economics are therefore driven by the price
difference (spread) between heavy fuel oil and diesel, not by the
underlying price of crude oil.
Whilst the spread between heavy fuel oil and diesel has
narrowed, the economics of MSAR production in qualifying refineries
remains sound. QFI is in advanced discussions with several
refineries who see significant opportunity in producing MSAR
despite the 60% fall in the price of crude oil.
Pressure on refinery margins combined with the fall in oil
prices have led to a large number of oil industry project
cancellations and delays in capex related to diesel refining
capacity. This could be beneficial to QFI as a reduction in future
diesel supply capacity should lead to an increase the spread
between heavy fuel oil and diesel and consequently improve the
economics of MSAR production.
A more comprehensive operational update will be provided to
shareholders shortly.
Quadrise Fuels International Plc +44 (0)20 7031 7321
Ian Williams, Executive Chairman
Hemant Thanawala, Finance Director
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance
Limited +44 (0)20 7131 4000
Dr Azhic Basirov
Ben Jeynes
Broker
Peel Hunt LLP +44 (0)20 7418 8900
Richard Crichton
Ross Allister
Alastair Rae
Public & Investor Relations
Pelham Bell Pottinger +44 (0)20 7861 3232
Philip Dennis
Rollo Crichton-Stuart
This information is provided by RNS
The company news service from the London Stock Exchange
END
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