Quantafuel – Most important Quotes from the Webcast Today

This has been a good quarter, and our business activities progressed as expected

Main highlights:

• Skive progressing well
• The rollout of the next generation large-scale plant called Mkt 2 on track
• Progress in the UK
• Construction of Esbjerg on track
• On track with our goal to initiate two large projects per year

Saipem cooperation moving ahead – generated significant interest from major petrochemical companies

Skive is moving forward with confidence

• Skive continues to progress in operating costs, capacity, and stability
• All four lines are now equipped with self-generated gas (NCG) heating – this improvement has significantly improved our operating costs and CO2 emissions
• Positive cash flow in Q4 2022
• New offtake agreement renegotiated and improved
• Two lines are used for testing, and two lines are for production
• See my previous post – Quantafuel: “We are running at utilization levels we never achieved before” for further details

Dubai

• The final decision on Dubai FEED study – final investment decision early next year

Sunderland

• Approval of planning application expected early next year
• Started negotiations with feedstock suppliers
• CBRE financial advisor engaged to secure funding commitments

Kristianslund

• Limitations in available feedstock result in positive cash flow by mid-2023
• A negative result of only 5 million NOK in 1H23

Esbjerg

• Denmark has no such sourcing facility today – a game changer for Denmark + key advantage for the large chemical recycling plant
• Construction is progressing within the schedule
• Commissioning in late 2023
• Trying to structure financing at Esbjerg level – limited funds should be needed from QFUEL

My take.

Positive quarter. All projects are progressing well. Saipem is a big deal. It generated significant interest in QFUEL from big global players. QFUEL is very cheap now, it is trading at levels well before Skive got into operation. I hear rumors that one of the big players may take up the whole financing. If that is true, big positive for QFUEL. We are buyers. The risk now is, that one of the large players would take the company private. We would at these levels.

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.