LONDON (Alliance News) - Quadrise Fuels International PLC shares dropped on Monday after it said its pretax loss in the first half of the financial year widened after it was hit by increased costs and a share option charge, and admitted it has been "frustrating" that it did not progress more of its projects in 2014.
Quadrise shares were down 24.4% to 11.00 pence per share on Monday morning.
For the six months ended December 31, the technology provider to the oil and gas industry reported a pretax loss of GBP2.2 million compared with a GBP1.8 million loss a year earlier. The loss widened as production and development costs rose to GBP552,000 from GBP342,000 and after it was hit by a GBP1.1 million share option charge.
At the end of December, Quadrise had a cash balance of GBP9.8 million and said it holds sufficient funds to cover all anticipated requirements to progress the major projects to the early commercial revenue stage.
"The prime focus is on moving the key projects to the formal contractual commitments that will underpin and direct the respective programmes and timetables. Management planned and anticipated that many key aspects would be more advanced at the close of 2014. The re-phasing of key programmes to 2015 has affected investor confidence and this is frustrating for the board, management and shareholders alike," said Chairman Ian Williams.
The company is currently progressing its Quadrise MSAR technology, which makes heavy hydrocarbons easier to use by producing a low viscosity fuel oil using water instead of expensive oil-based diluents, but also to produce a superior fuel with enhanced combustion features, in countries like Saudi Arabia, south America and Asia.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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