EQTEC Plc (EQT) is a UK based technology solution company for waste gasification to energy projects. The company is specialising in advanced gasification technology for industrial size power plants. The group is focussed on finding innovative measures to reduce increasing global waste and convert it into synthetic gas, which can be used to power turbines and generate electricity. EQTEC is known for its advanced modular gasification technologies offering higher efficiency as compared to the competitors. The company helps project developers in the construction of waste disposal plants with higher profitability margins.
Financial Highlights – H1 Financial Year 2018 (€)
(Source: Interim Report, Company Website)
In the first half of the financial year 2018 ending 30th June 2018, the company revenue increased to €546,288 against €20,418 in H1 FY2017. The company reported a gross profit of €113,514 in H1 FY2018 versus €20,418 in H1 FY2017. With an increase in the administrative expenses for the period, the operating loss increased to €1,217,062 in H1 FY2018 from an operating loss of €778,842 in H1 FY2017. Loss before tax for H1 FY2018 was up by €836,872 to €1,898,169 from €1,061,297 in H1 FY2017. The company’s reported loss for the period (continuing & discontinued) stood at €1,874,936 in H1 FY2018 against loss of €1,044,267 in H1 FY2017. The company’s basic and diluted loss per share for H1 FY2018 was €0.001 versus a loss per share of €0.006 in H1 FY2017.
The EQTEC Plc had signed a Framework Agreement with a California based power company Phoenix Biomass Energy, Inc. Phoenix owns, operate and build on-site biomass gasification plants in partnership with companies from other industries like Agricultural, Waste, and Forestry industries. As per the agreement, both companies will jointly develop biomass gasification power projects in the United States and had already identified 5 projects. They are targeting to produce 2 to 3MW in size with a forecasted value in between US$15 and US$20 million for each project.
EQTEC will provide its proprietary Gasifier Technology ("EGT"), together with technical design and engineering for the power plants and the parties will work together to secure the necessary funding to develop such projects. As per the agreement, both companies will focus on the production of clean energy from waste. The companies had worked together earlier, and Phoenix had chosen EQTEC for two power plants in California, and the design work of the first plant had been completed already.
Share Price Performance
Daily Chart as at May-23-19, before the market closed (Source: Thomson Reuters)
On 23rd May 2019, at the time of writing (before the market closed, at GMT 02:19 PM, EQTEC Plc shares were trading at GBX 0.73, down by 8.75 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 1.84/GBX 0.35. At the time of writing, the share was trading 60.32 per cent lower than the 52w High and 108.57 per cent higher than the 52w low. The company’s stock beta was 1.52, reflecting higher volatility as compared to the benchmark index. The outstanding market capitalisation was around £14.60 million.