(Alliance News) - EQTEC PLC on Monday said financial forecasts indicate profitability in 2021 as its pipeline continues to grow.
EQTEC is a Cork, Ireland-based gasification technology company focused on sustainable waste-to-energy projects. Shares in the company were 20% higher at 2.28 pence each in London on Monday morning.
For 2020, the company expects to report a loss no lower than EUR4 million, before any potential one-off adjustments.
More recently, EQTEC said it has experienced "considerable growth" in its non-contracted project pipeline, especially in Europe, with notable, new interest from Asia, the Middle East and Australia.
The number of opportunities in the six months to date has grown from 41 to 75, representing an increase of 83%.
Additionally, between July last year and February this year, the company added non-contracted tender opportunities worth a total potential of EUR316 million for a total potential pipeline value of EUR657 million.
For 2021, EQTEC is targeting contracted sales growth from six to eight projects across Europe. This includes the company's "biggest project yet", the RDF-to-energy facility at Billingham in the UK, which is a single project valued in excess of EUR30 million.
Revenue is forecast to be approximately EUR15 million in 2021, with positive earnings before interest, taxes, depreciation and amortisation, which would make 2021 EQTEC's first year of profitability.
Results for 2020 will be announced in April.
EQTEC has also entered into a framework partnership agreement to develop sustainable green energy projects in partnership with natural resource investing and exploration company MetalNRG PLC.
MetalNRG announced Monday that it has set up a special purpose vehicle, MetalNRG Eco Ltd, to develop biomass, waste to energy and sustainable green energy projects in the UK and Europe.
MetalNRG said it will and in partnership on investments with EQTEC, where EQTEC will be advising technically, financially, and operationally, becoming MetalNRG's technology partner for green energy projects.
MetalNRG said that the focus will be on "shovel ready" projects, that meet its existing investment criteria. The projects will have a capital expenditure investment of between EUR5 million to EUR15 million and will deliver revenues within 18 months of transaction close, the company added.
MetalNRG shares were up 8.4% at 0.79p in London on Monday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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