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FTSE AIM: QFI reports £2.6m loss amid growing development costs

QFI  A jar of cold process ultra low sulfur diesel in the laboratory at the Parkland Fuel refinery in Burnaby, British Columbia, Canada February 17, 2021. Picture taken February 17, 2021.  REUTERS/Jennifer Gauthier
QFI produces enhanced emulsified synthetic heavy fuel oils designed for commercial container vessels. Photo:Jennifer Gauthier/Reuters

Quadrise Fuel International (QFI.L) has reported a loss after tax of £2.6m ($2.9m) amid higher development costs and corporate expenses.

The AIM-listed company said total assets fell from £10.7m to £8m as at 30 June 2022 with cash balances standing at £4.4m. It also reported cumulative tax losses of £60m.

Production and development costs rose to £1.5m in the financial year, with another £1.4m going towards administrative and corporate expenses, the company said.

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Revenue was up, reaching £75,000 for the year ended in June 2022, which compares to £17,000 in the previous financial year.

QFI is a supplier of MSAR and bioMSAR emulsion technology and fuels which provide lower cost and lower carbon alternatives to fuel oil and biofuels.

"During 2022 Quadrise has positioned itself as one of the key decarbonisation solution providers in a rapidly changing global energy market,” Jason Miles, chief executive officer of Quadrise, said.

“The pace of decarbonisation continues to accelerate, and the energy industry that we serve is having to adapt quickly to this and other world events that have impacted supply and demand, and escalated energy costs. Our innovative fuel and biofuel solutions offer clients key opportunities to reduce energy costs and greenhouse gas emissions today to effect an early transition to net zero carbon,” he added.

In a statement to markets, QFI said it has “incurred aggregate losses since its inception and warned that “there can be no certainty that the Group will achieve or sustain profitability or achieve or sustain positive cash flow from its activities.”

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Quadrise is in discussion with candidate sites in Panama and Honduras to trial MSAR and bioMSAR at power plants as a precursor to potential commercial supply in 2023.

In July, Cyprus-based MSC Ship management said it would carry out proof-of-concept tests and operational trials using bioMSAR and MSAR fuels ahead of a potential global deal.

“2022 has seen the Company sign key agreements with MSC Ship management for marine fuel, Valkor for upstream applications, and with our client in Morocco to trial our bioMSAR and MSAR fuels as a precursor to commercial supply. Project activities are ongoing to deliver positive outcomes for Quadrise, and we continue to invest and collaborate in RDI to enhance our IP portfolio and future,” Miles said.

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