Stmnt re Share Price Movement

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
 
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