Quadrise Fuels International plc

Quadrise said interim results were largely in line with the same period last year, with the loss up slightly due to additional project and development costs. Loss per share was said to be in line with the prior period. Cash at the end of December was $4 million, and management expects another $950,000 from Valkor during the calendar year, bringing expected total Valkor license income to about $1 million. The company said its historical cash spend has been about $3 million per year, rising only about 10% to 15% with added headcount, and that $4 million remains more than one year of fixed costs. Forward-lookingly, management did not give full-year revenue guidance, but said MSC/Cargill signing is close, OCP is pursuing a longer trial, Valkor expects a $300,000 payment by month-end and $650,000 by year-end, and Panama commercialization depends on logistics and import permits being finalized.

Peter Borup emphasized that the company’s immediate priority is getting the MSC/Cargill trial underway and then using that as a launch point for commercial scale-up. He said Quadrise is also accelerating work with refineries and potential first-mover shipping customers so it is ready to supply fuel after a successful trial. His tone was cautiously upbeat: he repeatedly said the company is ‘getting quite close’ on MSC, while also stressing that timing on broader commercialization remains uncertain.

David Scott said interim results were broadly in line with last year, with a slightly higher loss because of additional project and development spend. He highlighted $4 million of cash at December-end and noted expected Valkor cash inflows of $950,000 during the year, which he said keeps the company in a ‘pretty healthy position’ relative to historical cash spend of about $3 million per year. He also said the $12,000 other income line was grant income from SEASTARS, with about $50,000 received overall and released into the P&L as work is completed; tax losses were stated at GBP 68 million. On the prior fundraising guidance, he said it is too early to say whether cash still lasts to commercialization because project timing has slipped, and milestones over the next six months will be important.

Analysts focused heavily on the delay and structure of the MSC/Cargill agreement, whether the deal would be tripartite or bilateral, and what ‘post-trial commercial considerations’ mean. Management said the VAT issue in Antwerp had been resolved, the remaining issues are pragmatic legal/commercial points, and they expect the outstanding contracts to be signed together, though they refused to give a timeline. Questions also probed whether MSC wants MSAR or bioMSAR, with Peter saying MSAR is likely the focus where the savings are better, but that MSC should ultimately answer. On the technical side, Jason explained that ISCC certification is not blocking the deal and that the final audit happens once the plant is installed and commissioned. Questions on Panama and Valkor centered on permit timing and sample delays; management said Panama approvals for MSAR and bioMSAR are in place, import permits now depend on final logistics, and Valkor samples were delayed by their own processing changes but should arrive soon for testing.