Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Think the missing piece of the puzzle is the glass half- empty miserable barsteward bears that are dominating the market.
Haven't a clue bp, but that MSC news should have been a launch pad for the Qfi sp. Hoping that the announcement of the refiner to complete the jigsaw puzzle will be the missing piece we need to actually convince the market this is really happening.
This collaboration is way more important and lucrative than Maersk would ever have been looking back in hindsight.
Hi Vince who do you think the I.Investor is?
Glad tomco holders are getting a significant rise hopefully on good news, certainly better than our rise on our monumental news with MSC due to the persistent seller messing it up for us.
Tomco flying, maybe joint news on way ,
I totally agree Haggis. This can be backed up by no bid came in when we were having the trials with Maersk.
Anyone suggesting QFI is an acquisition target before it has proven it's fuel can be commercialised (by completing trials and signing commercial supply agreements), is talking absolute twaddle, and doesn't have a clue how acquisitions happen in the real world.
The most common and effective way to extract the sulphur from HFO is to use hydrotreatment where they treat the oil with hydrogen, the sulphur binds to the hydrogen to create hydrogen sulphide. The process isn't majorly complex but moreso energy intensive and hydrogen in its purest form isn't cheap either hence the added costs. In addition, the more sour (higher sulphur content) a HFO is the more hydrogen and energy is required to remove it.
So it's much better to find a natural HFO oil that is sweet (lower sulphur content) so you either don't need to refine it to meet the regulations or if you do, the cost is much lower, hence why Valkors heavy sweet oil company will be a great match for us.
Crownos, I am aware of and understand everything you say but my understanding was in order to achieve the VLSFO "brew" the HFO was cut with various agents, (including unwanted airline fuel) due to covid to achieve a VLSFO concoction.
Maybe I have the wrong end of the stick but I assumed a LONO would be required for any significantly altered or new fuel. I guess the VLSFO must have been "close enough" to HFO for engine manufacturer approval??
Absolutely no way we're getting bought. Firstly because it would've happened in the Maersk era but mainly because buying a company to take it private isn't a matter of just beating the share price. It has to be announced. And once it was the share price would rise to commercialised levels.
@Wonga,
There never was a LONO for VLSFO because its not needed. Sulphur is not a required ingredient in heavy fuel oils for them to operate within an engine. Sulphur is quite simply a natural ingredient of heavy fuel oil and its removal would not affect an engines ability to use it.
The only reason we are striving for very low sulphur content in fuels is primarily for environmental reasons and to reduce pollution, as sulphur dioxide is very much a nasty pollutant. It wasn't sought to be removed before because doing so is an extremely costly refinery process making the cost of the fuel very expensive in comparison to standard HFO.
But EU regulations pushed to reduce sulphur levels to below a certain percentage which is now becoming the norm, so a VLSFO is and will become very sought after going forward, hence why the Utah deal with Valkors heavy sweet oil company will be quite lucrative for QFI as we will have an Msar/BioMsar VLSFO gaining best of both worlds right off the line, no refinery required making it much cheaper than refined VLSFO and much more friendly for the environment due to QFI's technology.
Haggis, "No company is going to bid for QFI at this stage, the risk level is far too high for that, like off the scale high."
I'm sorry but I disagree here. We are currently valued at around £21m. Even offering a 4x premium, (say 6p per share) this would only be around £84m. If, and it's a big if, Shell and MSC really believe in the future of our fuels both companies could make serious profits from developing them in a major way.
For both companies, £84m is small change, hence much less of a risk than you say and why wait until QFI are commercially established, say valued at £140m (10p a share) which could cost them upward of half a billion.
I still think it unlikely at this stage, but it all comes down to profits at the end of the day and their investment strategy will be driven by what will make them most money short and long-term.
Not sure if they where sell’s?
Renewed Selling today? What gives?
Get it for free if this selling continues
If you were to hazard a guess on a price they would pay to purchase QFI?
No company is going to bid for QFI at this stage, the risk level is far too high for that, like off the scale high.
First they would wait for the fuel to go commercial in marine and power, so that they KNOW it can be commercialised. Then they would wait for at least a year so that they KNOW there are no issues with long term use (safety, handling and storage, raw material supply chains, etc), no issues that were not discovered during small LONO trials, that no new risks have appeared that could halt commercial sales in the foreseeable future, etc.
Big companies that would bid for QFI are not loose cannons, they are very clever strategic thinkers that do not take massive risks.
I don't remember reading of any LONO trial success for VLSFO yet it seemed to be rolled out to commercial use rapidly.
Where there is a will, there's a way.
All true, but it’s called an “operational trial” for a reason. MSC need to evaluate if the fuel works ok for them operationally. That includes bunkering, storage, delivery to engine and the efficient use of manpower to make it all happen. It needs to pass all of those tests before it can replace HFO as a valid fuel.
MSAR passed the operational part of the trial with Maersk but fell short of the 4000 hours for a full LONO. The odds are heavily in favour of BioMSAR and MSAR successfully completing all trials.
The trials aka the LONO is not just for further solidified proof of concept, but probably moreso geared towards insurance cover. In the eyes of insurance organisations this fuel is deemed untested and thus not currently suitable to be covered under any insurance claims. Basically if MSC used this fuel on their ships now without this LONO then any marine insurance claim would be void, most especially if the fault lies with the engine.
The LONO is basically a way the engine manufacturers can give their thumbs up to insurance companies to say the fuel is suitable to be used in their engines and won't cause any damage beyond the known standards of wear and tear. Insurance is a big thing in the shipping industry and whilst is not a legal requirement, no company like MSC or Mearsk operates without it. So whilst we all believe both of QFI's fuels work which no doubt includes MSC themselves, this is still a necessary hurdle to jump over before MSC will grant us a go ahead with a commercial deal.
Jack123, In my opinion they know it works, the trials are to look at the efficiencies which also in my opinion they are aware of. Qfi is probably in its most advanced stages and on the cusp of multiple commercial deals. What I don't get is why the share price is at these shocking lows and also have been kept at these lows. Is someone looking to buy us out for next to nothing? Wtfdik.
One thing for sure, if any company wanted to pick QFI up for peanuts, they wouldn’t try to prove the fuel any further, it just adds value. Why wait
Or to trip us up again with a bouy... then buy us up for nothing
Your welcome. Keep in mind also that Soren Toft who was COO of Maersk up until 2020 and during the msar trials is now the top man, CEO at MSC.
Now there’s a guy that knows all about the Maersk msar trials and now with MSC, he is-putting his trust in our fuel
Thanks jackg123