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	[phone]
Ian Williams, Executive Chairman
Hemant Thanawala, Finance Director
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance Limited	[phone]
Dr Azhic Basirov
Ben Jeynes
Broker
Peel Hunt LLP	[phone]
Richard Crichton
Ross Allister
Alastair Rae
Public & Investor Relations
Pelham Bell Pottinger	[phone]
Philip Dennis
Rollo Crichton-Stuart

 

END

 

 

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